Residential sales in Q2 2022 ( April-June) in the Rs 1.5 crore plus price tag increased by over 270% Year-on-Year (Y-o-Y). The two larger markets of Delhi NCR and Mumbai saw maximum sales in the quarter in this price bracket. Apartments priced above Rs 1.5 crore had a share of 15% in the quarterly sales in Q2 2022. The higher levels of residential sales in the premium category show increased demand for bigger homes and buyer confidence coming back to the market.
Prices for residential properties in South India, including Bangalore, have gone up by 8–10%, and they are likely to keep going up because of rising input costs and disruptions in global supply.
The prices of critical raw materials, including steel, cement, aluminium, and PVC, have risen sharply between 30% to 100% during the last year.
Realty developers have been having a tough time protecting their margins as rising fuel prices have added to their woes.
According to industry estimates, over 11 million homes are estimated to be vacant across the country and we believe that these flats would now come into the rental market and help reduce housing shortages.