India’s residential real estate offtake increases 34% in 2022: India Knight Frank
According to information from the international real estate consultant Knight Frank, 312,666 housing units were sold in major Indian cities in 2022, a 34% rise over the previous year. Mumbai had the most house sales in 2022 with 85,169 units, followed by Bangalore with 53,363 units and the National Capital Region with 58,460 units. In addition, the price of new housing increased significantly by 41 cents per person over the previous year, adding 328,129 units. The 18th edition of Knight Frank India’s premier semi-annual study, India Real Estate: 2022, which offers a thorough analysis of the real estate market and office market changes in eight key cities in July-December 2022, was issued on Tuesday.
It should be highlighted that the real estate industry has experienced simultaneous growth in all key areas for the first time in more than 10 years, according to Shishir Baijal, President Zahn and Director Knight Frank India Track Management. “In 2022, activity in offices, residences, warehouses, and retail all increased significantly. The Indian real estate sector has benefited over the last year due to factors including shifting attitudes about house ownership, a rise in employment and returns to work, the expansion of commerce, etc., all of which were assisted by the economic situation, according to Baijal. Mumbai, New Delhi, Bengaluru, and Pune each saw gains of 7% in residential real estate prices in 2022.
Hyderabad had a notable growth of 6%, while Kolkata and Ahmedabad experienced an increase of 4%. As he pointed out, “A little price increase is a positive indication of a rising market, but its impact remains limited because demand has been adequately satisfied by supply, allowing market dynamics to stay constant.” With the proviso that India must exercise caution in light of geopolitical problems and the global economy, the pace of growth is anticipated to stay mostly constant in 2023 as a result of the nation’s continuing economic expansion. The semi-annual report from Pune-based real estate developer Gera Developments was also issued on Tuesday.
According to the most recent Gera Pune Residential Realty Report 2022, the average price of a home in Pune has climbed by 10.85% in the last year. Input expenses were shown to have compelled developers to increase pricing. The development of 123 luxury sector projects around the city (at an average cost of about Rs 8,300 per square foot) helped to significantly raise the citywide average for real estate prices. “Like other property markets around the nation, the real estate industry in Pune had a solid year in 2022. Even though some sales may have declined, the rise in wages over this time more than offset the increase in interest rates, according to Rohit Gera, chief executive officer of Gera Developments. “The rise in interest rates has not had a significant negative impact on the broader market,” he said.
The CEO did note that because of global and macroeconomic circumstances, the future is more unclear.
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