APPD Market Report Article
ChennaiNovember 29, 2022
Dr Samantak Das, Head of Research, India & Sri Lanka
Sales jump 47% q-o-q
- High-end sales continue to improve, as senior-level employees in the tech sector and high-net-worth individuals keen on home ownership aim to upgrade their lifestyle. Momentum is clearly visible with sales in the segment jumping by over three times on a y-o-y basis.
- High-end sale numbers remained higher than new launches in Q3, following the trend of previous quarters. The new high-end launches were located in the Central submarket due to the limited availability of land in other premium market locations.
High-end projects focusing on amenities drive new supply
- New launches in the high-end segment were concentrated in the Central submarket. Although limited, there were still nearly three times more new supply on a q-o-q basis.
- Demand for tech-enabled homes has increased after the COVID-19 pandemic sped up digital transformation processes, pushing developers to provide such options to homebuyers. A few developers are also providing attractive discounts for homes in tech-enabled buildings in the city.
Capital values and rents remain stable
- Developers continue to offer stamp duty waivers and discounts to buyers to tap maximum homebuyer traction after a price hike from the previous quarter. More hikes are likely in the upcoming quarters given the cost-push inflation arising from input material costs.
- Rents continued to remain stable for high-end residences.
Outlook: Developers to leverage festive season to attract homebuyers
- Sentiment in the home-ownership market is likely to remain strong. The rising income levels and increasing adoption of hybrid work culture, affordability of premium homes and usability of larger homes loaded with amenities continue to drive the residential market.
- Developers are likely to offer discounts to sustain the buying momentum and soak up some cost pressures resulting from increased construction expenses, as capital values are expected to inch up gradually in the upcoming quarters.