Regardless of how most industries in India suffered one of their worst slumps in the past two years, the real estate sector surprisingly outshined. As per Square Yards research, India witnessed 81K+ new launches in the top six cities in the first quarter of 2022. This number is 68 percent more than the new launches in the same quarter of 2021. To understand the ground cause behind it, the research team of Square Yards dived deeper and churned out some good reasons and real numbers.
While COVID-19 might not be over yet, the situation seems to be under control now as a major populace is vaccinated. Things are gradually getting back to normal with resuming offices, travel, project developments, etc. Compared to 2021, the first quarter of 2022 is proving to be a good restoration of the normal lives people used to have in the pre-COVID era, with certain regulations at play.
This has been more prominently witnessed in the real estate sector with an increased number of buyers looking for new homes and developers launching new projects. In the first quarter of 2022 alone, the real estate sector across the top six metropolitan cities witnessed 81,000 new project launches, showcasing a whopping 68 percent jump from what it was in the first quarter of 2022. Variety of factors such as unchanged repo rate, stamp duty cuts across top cities, property tax waivers, in addition to several incentives rolled out by the developers and property builders could have also been propelling factors to such a growth.
However, the question now is: Did all of these metropolitan cities experience the same spike or are there some which observed a dip?
Square Yards offers a deep insight into it along with the reasons behind the surging demand and new launches of residential properties in India.
Note: This research is based on property listings at squareyards.com, encompassing the six major metropolia in India: MMR, Pune, Gurugram, Noida, Bengaluru and Hyderabad.
Table of Contents
Analysing the Change
As per Square Yards data, the first quarter of 2022 not only demonstrates an impressive year-on-year jump in new residential launches but also a quarter-on-quarter improvement. Below, we are going to take a closer look into the growth dynamics of the new residential launches drawing not only a robust annual comparison (Q1, 2021 and Q1, 2022) but also a deft quarterly analysis (Q4, 2021 and Q1, 2022).
Quarter-on-Quarter Analysis of the New Project Launches
Compared to the last quarter (Q4) of 2021, the first quarter of 2022 has shown a record jump by almost 50 percent in new project launches across the top six cities of Gurugram, Noida, MMR, Pune, Hyderabad and Bengaluru.
This heavily indicates that along with new projects, the projects that had been stalled due to the pandemic in the previous year have resumed full-swing in 2022, welcoming prospective buyers to grab a look and book their space.
Out of the six cities, MMR and Bengaluru demonstrate the highest percentage change in new project launches by 92 percent and 84 percent, respectively. This increase in the number of new project launches in these cities could be attributed to their district or suburban development plans, facilitating housing and commercial spaces.
But an unusual sight to behold in this data is the figures and percentage change of new residential launches in Gurugram and Noida. In Q1, 2022, the cities recorded a dip in the new project launches as compared to previous quarters. However with new infrastructure projects in the pipeline, in the upcoming months, the numbers can be expected to inch up.
Year on Year Analysis of the New Residential Launches
The total new launches in Q1 2022 summed up to 81K+ against 48,000 new housing units launched in Q1 2021. This signifies that Q1 2022 registered an year-on-year rise of 68 percent for new residential property launches across the top six cities in the country.
In Square Yards’ year-on-year (y-o-y) approach to analyse new residential launches, it was found that MMR had recorded the highest percentage change (126 percent) in Q1 2022 as compared to Q1 2021, followed by Hyderabad and Bengaluru.
Out of these three top performing cities, MMR grabs the most attention as it not only shone bright in the q-o-q analysis with about 90 percent change, it also continues to be the most preferred city amongst realtors in the last one year.
The same can be witnessed in Hyderabad’s data wherein the city showed about 83 percent year-on-year change with a total of about 20,000 new residential launches. Even though its Q4, 2021 to Q1, 2022 analysis demonstrated only a 63 percent change, when compared with the count of new residential launches in Hyderabad in Q1, 2021, it was seen to have made a long jump by about more than 9,100 new launches.
Unlike in the quarter-on-quarter analysis, the new project launches in Gurugram fared well in the year-on-year analysis by 35 percent. Noida, on the other hand, showed a slump for new residential launches here as well.
Apart from the q-o-q analysis (as elaborated in the previous section), the y-o-y change further reiterates the need for long due synchronisation between the supply and demand in the real estate market. This is because during and post the pandemic era a significant increase in the search for residential units has also been witnessed.
So, in the first quarter of 2022, it can be estimated that as homebuyers braced themselves to quench their long-awaited desire to purchase their own property, the developers, too, geared up for releasing new projects in the market. Thus, the fast climbing count of new launches across the six major metropolia.
see also@ Top Cities Witness 50,000+ New Residential Property Launches in Q4, 2021
City-Wise Analysis of New Launches of Residential Projects in Q1 2022
Let’s glance through the city-wise division of the new launches of residential properties in 2022 below.
MMR (Mumbai Metropolitan Region)
Among the top six cities in India, MMR recorded the highest residential property launches in Q1 2022. The city alone accounted for 92 percent quarter-on-quarter and 126 percent year-on-year change and launched more than 28,000 new housing units in Q1 2022 as against 12,000 in Q1 2021.
This spike in the number of new launches in MMR can be seen across its eight major zones, including Mumbai Central Suburbs, Mumbai Western Suburbs, Mumbai South, Mira Road and Beyond, Navi Mumbai, Thane, Mumbai Harbour and Mumbai Beyond Thane.
Of all the eight zones in MMR, Mumbai Beyond Thane region delivered the maximum of 26 percent new launches, while Mumbai Harbour contributed just 1 percent. The reason why Mumbai Beyond Thane got the most launches, might be attributed to the high residential demand noted in the area in the past few quarters.
Affordability and imminent accessibility to surrounding work hubs are the chief factors prodding people to buy houses there and maybe that’s why developers also take it to be a lucrative spot for launching new residential projects.
Mumbai Harbour, on the contrary, isn’t affordable for everybody. Plus, it’s not a cut-on-cut residential zone. Hence, only a small fraction of new project launches were seen there.
Some of the top projects in MMR in Q1,2022 include Paradigm 71 Midtown in Chembur, Mumbai Central Subway, Ajmera Crosstown One Kalyan in Kalyan West, Mumbai Beyond Thane and Dosti Eastern Bay Phase 3 in Wadala, Mumbai South.
Bengaluru
Bengaluru comprises five major zones, namely, Central, East, North, South and West Bengaluru.
Out of all the zones, East Bengaluru witnessed the highest number of new residential property launches with 52 percent share, followed by North Bengaluru.
East Bangalore is one of the most sought after localities to reside in the city as it is primarily the city’s IT hub with beautiful stretches of greenery. It is the perfect blend of residential and commercial areas.
On the flip side, West Bangalore, at two percent, has the lowest number of new property launches in the city. This is mostly because the zone is a hub of industries and numerous civic infrastructures with less scope for residential project development.
Sobha Brooklyn Towers Town Park in Hosur Road in South Bangalore, Klassik Landmark in Sarjapur Road in East Bangalore and Vaishnavi Life in Bettenahalli in North Bangalore are some of the top projects that launched a significant number of new residential units during the first quarter of 2022.
Noida
New Okhla Industrial Development Authority, Noida, is the only city out of the top six that saw a small decline in the new residential property launches in Q1, 2022. More than 1,800 new residential units were launched in the first quarter across four major zones, including Noida Expressway, Noida Central, Yamuna Expressway and Noida Extension.
Accounting for a huge share of 44 percent, Noida Central received the maximum number of new launches. This is mostly because this zone constitutes all the significant developments in the city comprising the Botanical Garden, shopping malls, Atta Market, and more. Planned and well-facilitated, it also flaunts excellent connectivity and wide stretches of greenery serving as a hot destination for home buyers.
However, Yamuna Expressway had the lowest residential launches with a mere 5 percent share. The prime reason behind this could be that the zone is yet to come up with some crucial infrastructure and services like proper roads, electricity, water, sewerage, etc.
RG Mirage in Sector 120 in Noida Central, Godrej Wood Plumeria and Godrej Woods Regia in Sector 43 in Noida Central, and Vrinda Heritage Skyward in Noida Extension Sector 1 are some of the top projects launched in Noida in Q1, 2022.
Hyderabad
Hyderabad is one of the top contributors accounting for 83 percent year-on-year increase in the number of new launches in the recent quarter. The city comprises five major zones, including Central Hyderabad, East Hyderabad, North Hyderabad, West Hyderabad and South Zone. Together these zones added more than 20,000 new residential units to its kitty in Q1, 2022.
Of all zones in the city, West Hyderabad furnished the maximum number of houses which accounted for 52 percent of the total launches in the city. This was followed by North Hyderabad, which comprised about one-third of the total new projects launched in the city during Q1, 2022.
West Hyderabad is an employment hub and commercial destination, with good social and physical infrastructure, and excellent connectivity to roads, highways, railways, and airports. Possibly, this is the reason why it harbours the most demand which potential real estate developers tapped into, resulting in heightened new project launches.
In contrast, Central Hyderabad accounted for only four percent of the total new launches in the city. This is primarily due to the lack of land availability in the region as the place is packed with shopping malls, retail shops, restaurants, etc. The area is also a bit expensive for residents.
Gurugram
The financial and technology hub of India, Gurugram launched about 3,800+ new residential units in Q1, 2022 (witnessing quarterly growth of 35 percent). The city consists of five major zones, including Golf Course Road, New Gurgaon, Central Gurgaon, Southern Peripheral Road and Dwarka Expressway.
Because of its strategic location, exceptional physical and social infrastructure, excellent connectivity and increased scope for the development of residential area, Dwarka Expressway has become a choicest location for property launches.
Connecting Delhi to Gurugram, the expressway proves to be a focal point for both residential and commercial growth whose benefits are now being reaped by developers to the fullest. And that is clearly evident with the number of new residential units in Q1, 2022 itself, accounting for 85 percent of the total growth in Gurugram.
On the other hand, the Southern Peripheral Road remained muted when it came to new launches. This can also be due to the rampant trend where more developers are now keen on launching new residential units across the Dwarka Expressway, given its completion due in August 2022.
Breeze Global Heights in Sector 88A on Dwarka Expressway, Signature Global Imperial in Sector 88A on Dwarka Expressway, and DLF The Grove in Sector 54 on Golf Course Road are a few major new launches in Gurugram in Q1, 2022.
Pune
In Q1 2022, Pune noted an year-on-year rise of 18 percent and added 14,000+ new launches to its kitty. The city comprises six major zones, namely, Central Pune, East Pune, Pimpri Chinchwad, South Pune, North Pune and West Pune.
Out of all zones in the city, in the first quarter of 2022, East Pune saw the maximum number of new residenital units and accounted for 28 percent of the total new project launches. Proximity to major IT parks, airport and railway station along with an evolving social infrastructure have made East Pune one of the favourite regions for residential developments.
On the contrary, Central Pune is populated with shopping malls and stores which reduces the scope of residential construction. Hence, the zone returned only two percent of the total share and launched 340+ new residential units.
Some of the top projects in Pune include VTP Bellissimo in Mahalunge in West Pune, Kalpataru Aurum in Baner in West Pune, VTP Pegasus in Kharadi in East Pune.
see also @ New project launches record a rise of nearly 20% in Q1, 2021
Bottomline
While developers might have been walking on eggshells these past two years, the first quarter of 2022 proved to be a breather. With the declining impact of the pandemic, augmented vaccination drives and lives coming back to normal, developers took the opportunity to bounce back with over 81K new residential property launches.
While COVID has wreaked havoc over several industries, it also drove the general populace towards the decision of buying their own home. So, with the onset of a recuperating stability in the economy, Q1 2022 seems to be the point of convergence of a long awaited demand and supply in the real estate market wherein not only developers launched their new and stalled projects but buyers are also excited enough to search for their dream abode.
Given the huge number of new launches across the top six cities, it seems, the figures will go up in the next quarters as well.
