Housing sales momentum likely to sustain in 2023, says JLL India

Sales of residential apartments, which rose 68 per cent in 2022, are likely to sustain this year on likely moderation in inflation and better price deals from builders, according to JLL India.

In a statement, JLL India on Thursday said that the sale of apartments grew 68 per cent to 2,15,666 units in 2022 from 1,28,064 units in the previous year across seven major cities -- Mumbai, Delhi-NCR, Bengaluru, Hyderabad, Chennai, Kolkata and Pune.

Mumbai includes Mumbai city, Mumbai suburbs, Thane city and Navi Mumbai.

The annual sales of 2,15,666 units recorded in 2022, the highest in over a decade, next to the peak seen in 2010 at 2,16,762 units, it added.

Data includes only apartments, while rowhouses, villas and plotted developments have been excluded.

On the outlook, JLL India said, "Sales momentum is likely to sustain in 2023 on the expectations of moderating inflation supporting a reversal in repo rate hikes".

"Moreover, likely measures from stakeholders, such as longer loan tenures and attractive pricing deals, will keep buyers' affordability levels within comfort," it added.

JLL India noted that the sales of apartments rose despite the rise in mortgage rates, property prices and global headwinds during 2022.

"The (sales) momentum inhibitor looks to be a temporary one as India has a resilient domestic economy and robust macroeconomic fundamentals," said Siva Krishnan, Managing Director and Head, Residential Services, India, JLL.

Commenting on the report, Pradeep Aggarwal, Chairman of Signature Global, said the housing demand scenario has changed significantly post-COVID.

"Most families now understand the importance of owning a house and this is why we are witnessing strong demand in the housing sector," he noted.

However, Aggarwal said, the sector needs support from the government in the upcoming Budget so that the demand remains intact even in 2023.

Trehan Group MD Saransh Trehan said, "The good sign is that recent hikes in home loan interest rates have not impacted housing demand much".

Interest rates are still in a comfort zone of sub 10 per annum and therefore, the momentum would continue in the new year, Trehan added.