Indian residential market records annual sales growth of 60%; 158,705 housing units sold in H1 2022: Knight Frank India

Office transactions, at 25.3 million sq. ft., translated to 107% year-on-year growth. NCR witnessed 154% YoY rise in home sales during H1 2022, according to the Knight Frank report released on July 6.

Residential real estate sales grew by 60% in the first half of 2022 to 158,705 units across the top eight cities in the country from 99,416 units in the same period last year. Home sales in the National Capital Region (NCR) centred on New Delhi grew 154%, according to a Knight Frank report released on July 6.

Office transactions, at 25.3 million sq. ft., increased 107% year-on-year (YoY), indicating the potential of the market as the COVID-19 pandemic let up and the economy bounced back.

Bengaluru led office transactions with 7.7 million sq. ft., followed by NCR with 4.1 million sq. ft., during H1 of 2022, Knight Frank India said in the 17th edition of its flagship half-yearly report: India Real Estate: Residential and Office Market H1 2022.

The report presents a comprehensive analysis of the residential and office market performance across the eight major cities for the January–June period.

Home sales of 158,705 units recorded in the period were the highest since H2 of 2013 for any half-yearly period. The robust sales have prompted a significant increase in real estate prices across all markets.

Homebuyers’ need for a lifestyle upgrade, low interest rates, comparatively low prices and the renewed need for home ownership sparked by the pandemic have been the primary drivers for the sales growth, the report said.

Developers responded strategically to the demand momentum and the shift in sentiment and launched 160,806 units in H1 of 2022, which was 56% higher than in the same period last year, Knight Frank said.

Mumbai’s sales volume of 44,200 home units accounted for 28% of the total sales amongst the top eight markets. In terms of the annual percentage increase, home sales in the NCR rose 154% YoY to 29,101 units. NCR accounted for the second largest share of sales among the eight top real estate markets in the country.

Bengaluru performed strongly too with sales growth of 80% YoY in H1 2022 to 26,667 units as increased hiring and steady income growth in the Information Technology (IT) sector buoyed demand.

Housing prices increased by 3-9% YOY

According to the report, residential prices recorded strong growth across all cities during the first half of the year. Prices increased across in all markets in the range of 3% – 9% YoY with larger volume markets like Mumbai (6%), Bengaluru (9%) and NCR (7%) posting notable increases.

It was the first time since H2 of 2015 that prices increased YoY across all markets, Knight Frank said.

Share of home sales in the Rs 1 crore range increased by 20%

The share of sales in the Rs 1 crore and above segment grew significantly from 20% in H1 2021 to 25% in H1 2022, the report said.

Homebuyers’ need to upgrade to larger living spaces with better amenities and the fact that pandemic-induced income disruptions did not affect higher-income categories as much as they did the others were thought to be the factors responsible for the rise in sales.

On the contrary, the share of home in the Rs 50 lakh to Rs 1 crore category dropped to 34% in H1 of 2022 from 39% in the same period last year. The Rs 50 lakh and below category declined marginally from 42% in H1 of 2021 to 40%, it said.

The previous high of 185,577 units in residential sales was recorded in H1 of 2013. At an 8-year high for any half-year period, new home unit launches witnessed an addition of 160,806 units in H1 of 2022 marking a rise of 56% YoY from 103,238 units in the same period last year.

Strong growth in sales velocity, has led to a modest decline in unsold inventory, which dipped marginally to 440,117 units in H1 of 2022. The strong uptick in sales also brought the Quarters to Sell (QTS) level down to 7.8 quarters from 10.9 quarters in H1 of 2021.

“Home buying has witnessed a strong rebound since the advent of the pandemic and continues despite inflationary concerns in the economy. The interest rate cycle having turned during this period has impacted affordability, but the performance of the broader economy (and changed buyer perceptions) has had a greater bearing on market momentum for the remainder of the year as it dictates homebuyer income levels and demand much more directly,” said Shishir Baijal, chairman and managing director, Knight Frank India.

Office transactions: Marginal slowdown in early part of the year overcome

On the office market performance, Knight Frank India said all the top eight cities experienced substantial growth during H1 of 2022, recording transactions of 25.3 million sq. ft. in January–June. Office completions were recorded at 24.1 million sq. ft. in the same period.

The office market recorded robust activity during H1 of 2022 as the pandemic waned and the economy recovered despite geopolitical concerns triggered by the Russian invasion of Ukraine. Office transactions grew 107% from 12.3 million sq. ft. in H1 of 2021. In the first half of the year, Q2 registered 14.6 million sq. ft, of gross leasing transactions compared to 10.7 million sq ft in the year-ago period.

A marginal slowdown in leasing reansactions in the early part of the year due to socio-economic and geopolitical standoff was quickly overcome, the report said.

Bengaluru made up 31% of the total area transacted with the highest rental increase of 13% YoY in H1 of 2022. With an increasing need for flexibility and a hybrid working environment, the co-working/managed office sector’s share of transactions increased to 17% in H1 of 2022 from 10% in H1 of 2021, Knight Frank said.

The volume of new completions, which were the highest since the start of the pandemic, reached 24.1 million sq. ft., higher by 61% over H1 of 2021, the report said.

Bengaluru, with 5.8 million sq. ft. and Hyderabad, with 5.3 million sq. ft., cumulatively made up 46% of the total space delivered during the period, the report said.

In terms of office rents, Bengaluru and Pune recorded the maximum increase in rental values at 13% and 8% YoY respectively, mostly due to higher demand and lack of Grade A space. Hyderabad, Mumbai and NCR also posted moderate increases in rental values. Rental values in Chennai, Ahmedabad and Kolkata remained stable, the report said.

In terms of sector-wise transaction, Information Technology remained the single largest occupier of office space with 27% of the total during H1 of 2022.

The share of the co-working sector in total transactions increased to 17% in H1 of 2022 from 10% in H1 of 2021, recording the maximum increase across sectors. Occupiers’ preference for flexibility and the overall service offering of co-working/managed office premises has taken root during the pandemic and is expected to stabilize. Other sectors including healthcare, logistics, media, legal services and consulting made up 32% of all leasing transactions.

“The robust performance delivered by the office market during H1 2022 has set the tone for 2022. Physical occupancy levels are rising as more companies want their employees to return to office. At the same time, hiring across many sectors has picked up as India’s economic growth continues. With the current pace of leasing, we expect the year of 2022 to see leasing volumes close to the peak of 2019 and exceed in the next year, said Baijal of Knight Frank India.


Back to All Thane Real Estate News

To Get More Information About Properties in Thane City Or Call us On 9930011453 or Email us On

Share This: