The real estate market in general and the residential market, in particular, had a spectacular time in the year 2022. There was a healthy demand for housing, most of which came from end-users, in the leading cities as well as in tier 2 and tier 3 cities. The first half of the year saw an improvement in the level of job security as compared to the uncertain pandemic period. The sentiment toward homeownership has been continuously expanding, and low house loan rates have also helped residential real estate gain and retain momentum. If current trends and sales in the first three quarters of this year are any indications, the housing market will have surpassed its previous peak in 2014 and hit an all-time high in 2022 across the top seven cities.

Here are some of the trends that shaped the Indian housing market in 2022:

The three sectors with the highest sales in 2022 were mid-range i.e. INR 40 - 80 lakh, premium i.e. INR 80 lakh - INR 1.5 Cr, and luxury i.e. more than INR 1.5 Cr. Affordable housing, on the other hand, had a difficult time, with more buyers in this segment adopting a wait-and-watch attitude; unsurprisingly, new supply in this category significantly decreased. In the year before Covid, 2019, 40 percent of the 2,36,560 units released in the top 7 cities were for affordable housing, which had the biggest supply share. In the first nine months of 2022, only 21 percent of the roughly 2.65 lakh units that were launched in the top 7 cities during this time were considered affordable housing.

Demand was predominantly driven by end-users, and the majority of its attention was directed toward projects developed by Top developers, who acquired even more market share in 2022. During the first three quarters of the year, top developers were responsible for the introduction of around 60 percent of the 2.65 lakh units. These same developers sold more than 55 percent of the 2.73 lakh units that were acquired during this time period.

The average price of a home went up by 5 to 7 percent in 2022, however, despite this and the accompanying rise in the interest rate on home loans, there was no influence on the number of homes sold in 2022. After a period of two to three years during which prices remained relatively unchanged, it was unavoidable that they would increase.

The year 2022 saw a surge in the popularity of plotted developments, particularly in the cities of South India. Despite the fact that the worst of the epidemic is gone, which led to increasing demand for independent living, plots continued to be the most popular residential option in Bengaluru, Chennai, and Hyderabad.

NCR's unsold inventory decreased to 1.33 lakh units towards the end of the third quarter of 2022, the lowest level since 2013 when it was 1.5 lakh units. In 2022, robust sales and limited fresh supply enabled NCR to record this extraordinary reversal chapter. In addition, the fact that top developers dominated new product introductions in 2022 helped raise consumer confidence and sales.

Popular Residential Locations In 2022:

Sarjapur Road, Whitefield, and Bommasandra were the three most abundant micro-markets in Bengaluru. According to a study, about 14,415 units were added to these three markets during the first nine months of 2022.

Thane West, Dombivli, and Kalyan were the three micro-markets in Mumbai with the most supply. Approximately 23,620 units were introduced in these three regions between January and September.

Moshi, Kharadi, and Hinjewadi are the top three micro markets in Pune in terms of availability. In the first nine months of 2022, these three markets witnessed a total fresh supply of around 9,955 units.

In Hyderabad, the three micro-markets with the biggest supply were Puppalaguda, Tellapur, and Ameenpur, with a total fresh supply of approximately 13,690 units.

In Chennai, The top three micro-markets for new supply in the first nine months of 2022 were Madhavaram, Medavakkam, and Guduvancheri, with around 1,540 units added.

In Kolkata, The top three micro-markets with the most supply were Rajarhat, Narendrapur, and New Town, which had around 5,450 units introduced between January and September 2022.

What's Next:

The year 2022 is nearing its end. The original deadline for the government's Housing-for-All goal was March 2020; nevertheless, there is still more work to be done. Despite the fact that the Centre has already extended the urban and rural components of the PMAY program for an additional year, a great deal more is required to reach the mission objective.

In a highly diversified nation that will surpass China to become the world's most populous nation by 2023 (according to a report by the United Nations), it is difficult to meet the varying levels of affordability for every resident.

While this is happening, the government has continued to demonstrate its dedication to the cause by allocating Rs. 48,000 crores for the PMAY in the Budget 2022 to 2023, a sum that is 75 percent more than the Rs. 27,500 crore budget allocation from the previous year.