Input costs pressure and supply chain issues may induce price increases
This year will see “very satisfactory growth” for the Indian residential sector as long as the coronavirus pandemic remains in check, though input cost pressure and supply chain issues may induce a 5-8% increase in property prices, according to Anuj Puri, Chairman – ANAROCK Group in Mumbai.
“Various trends will shape the sector this year. Grade A developers will corner more market share, and sales will come back to the pre-pandemic levels of 2019,” he said in a report released on 3 Jan 2022.
“Extrapolating on the performance in 2021, 2022 will see very satisfactory growth as long as the coronavirus pandemic remains in check in India,” said Puri.
“End-users will remain the dominant market force, and peripheral areas of the larger cities will continue to see both supply and demand traction,” Puri said.
Notwithstanding the devastating 2nd wave of COVID-19, the residential real estate staged a convincing comeback in 2021, he added.
ANAROCK data reveals that approx. 2.37 lakh units were launched across the top 7 cities during the year, touching the pre-COVID levels of 2019s. Yearly, new launches rose by 85% in 2021 over 2020.
Housing sales rose 71% Y-o-Y in 2021 with approx. 2.37 lakh units sold, thus reaching 90% of pre-COVID 2019 levels.
Of approx. 2.37 lakh units launched in 2021, the mid-segment (Rs.40 lakh to Rs.80 lakh) had the maximum share with 39%, followed by the affordable segment (priced under Rs.40 lakh) with a 26% share. The premium segment (priced between Rs.80 lakh to Rs.1.5 crore) had a 25% share. fiinews.com
