Top seven cities see 15% fewer homes sold from April to June due to rising costs of home ownership and lending, report says
Home sales fell 15% in the April-June period to 84,930 units in seven major cities from the previous quarter, according to Anarock. The reason attributed to the fall is the rise in house prices as well as mortgage rates. Sales amounted to 99,550 units in the January-March quarter of this year.
Home sales, however, jumped 3.5 times to 24,569 units in the same quarter last year. Housing brokerage PropTiger, in its report released a day earlier, said sales jumped more than 4.5 times year-on-year in April-June in eight cities to 74,330 units, while demand had increased by 5% compared to the previous quarter.
Anarock Chairman Anuj Puri, commenting on the sales figure, said: “Inflationary pressures on input costs have forced developers to raise property prices over the past few months, and RBI has triggered two rate hikes that have inflated mortgage interest rates.”
“These two factors have combined to increase the overall cost of acquiring a property for homebuyers, resulting in lower home sales,” he added. Puri said sales could also have been affected due to family trips during summer school holidays.
For the Mumbai Metropolitan Area (MMR), home sales fell by 11% to 25,785 units in April-June 2022 from 29,130 units in the previous quarter. The Delhi-NCR market saw a 19% drop in home sales to 15,340 units from 18,835.
Housing sales in Bangalore fell by 14% to 11,505 units in April-June from 13,450 in January-March 2022, while Pune recorded an 11% decline in housing sales in the April-June quarter , 12,500 units against 14,020 units.
Residential property sales in Hyderabad fell by 15% while Chennai saw a decline of 24%. Home sales in Kolkata fell by 20% to 4,800 units in April-June from 5,990 units in the previous quarter.
“Each year, prices have increased by 4-7%, mainly due to higher input costs and good demand post-COVID-19,” said Anarock, who took into account sales of apartments, villas and townhouses in its data.
The Delhi-NCR market includes Greater Noida, Noida, Ghaziabad, Gurugram, Faridabad, Bhiwadi and New Delhi. The MMR market includes Navi Mumbai, Thane and Mumbai.
With PTI entries