Home Loan interest rate hike impact? Housing sales decline 2 percent in third quarter: Report

Home loan rates have increased by up to 2 per cent in the last few months propelled by multiple hikes in the repo rate by the Reserve Bank of India (RBI). While real estate experts have maintained that home loan rates continue to be lucrative despite the increase, housing sales have witnessed a minor decline in the third quarter of 2022. According to a report by ANAROCK Property Consultants, the quarter-on-quarter housing sales in the National Capital Region (NCR) declined by 2% in Q3 2022, second only to Chennai which also witnessed a drop in sales in the quarter.

"Nearly 15,000 housing units were sold in the third quarter of 2022 in NCR, accounting for 17% of overall residential sales in the top 7 cities. Residential sales in the region decreased by 2% in comparison to Q2 2022; however, on a year-on-year basis, the sales grew by 46%," said the report.

 The report said that Gurgaon accounted for nearly 54% of all sales in Q3 2022 while Greater Noida came in second with roughly 16% of house sales, followed by Ghaziabad at 11% and Noida at 9% of sales. The remaining cities Faridabad, Delhi, and Bhiwadi, registered home sales of 10% in the current quarter.

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"NCR witnesses the highest year-on-year decline in new launches amongst the top 7 cities. The National Capital Region (NCR) accounted for 7% of the total new supply in Q3 2022 across the top 7 cities. Approximately 6,400 new residential units were launched between July and September 2022. In comparison to the previous quarter, new launches grew by 57%, but saw a 24% decline on a year-on-year basis," said the report.

In contrast to the preceding quarter, the mid-end segment has surpassed the number of affordable housing launches to become the top launched price bracket among developers in the current quarter, accounting for 35% of new supply.

The NCR also registered the highest drop in inventory overhang and available inventory on a quarterly basis. "Accounting for 21% of the total available stock across the top 7 cities, the available inventory in NCR was at 1.32 lakh units by the end of Q3 2022. NCR sees the highest decline amongst the top cities by 6% against the preceding quarter. On a yearly basis, the available residential stock declined by 21%," said the report.