The Indian residential property market continued to grow in the third quarter of 2023 despite being the usually slow monsoon quarter. 1,20,280 housing units were sold in the top seven cities of India, against approximately 88,230 units during the same period in 2022, implying a significant 36 percent growth in annual sales, according to a report by ANAROCK, a real estate consultancy based in India.
The report said that top seven cities also witnessed significant new supply with over 1,16,220 units added in the quarter, against 93,490 units in corresponding period of 2022 - a 24 percent annual supply increase.
The seven cities include Mumbai Metropolitan Region (MMR), Pune, National Capital Region (NCR), Bengaluru, Hyderabad, Chennai and Kolkata.
Budget Segment
According to the report, in terms of budget segments, the mid-range segment (homes priced between Rs 40–80 lakh) continued to dominate with a 28 percent share of the total new supply in Q3 of 2023. The luxury segment (homes priced above Rs 1.5 crore) and premium segment (Rs 80 lakh – Rs 1.5 crore) were close behind with a 27 percent share each.
Despite increased new supply, existing housing inventory saw a 3 percent yearly decline across the top seven cities – from approx. 6.30 lakh units by Q3 2022-end to approx. 6.10 lakh units as on Q3 2023-end.
Also read: Housing sales in FY23 up 48% to Rs 3.47 lakh crore driven by higher volumes & prices: Anarock
Price Growth
Average residential prices in the top seven cities collectively saw a double-digit growth of 11 percent in Q3 2023 against Q3 2022. At 18 percent, Hyderabad witnessed the highest yearly average residential price growth, followed by Bengaluru with a 14 percent annual rise, the report stated.
The continued healthy sales momentum is at least partially attributable to the repo rate pause maintained by the RBI in the two recent monetary policies. This has kept home loan interest rates stable, keeping housing purchase sentiment high, the report added.
MMR recorded highest sales:
"Among the top seven cities, MMR recorded the highest housing sales of approx. 38,500 units, followed by Pune with approx. 22,880 units," said Anuj Puri, chairman of the ANAROCK Group.
"Cumulatively, the two western cities accounted for 51 percent of total sales seen across the top seven cities in Q3 2023. In terms of growth, MMR saw a 46 percent annual rise in housing sales, while Pune saw a massive 63 percent yearly jump,” he said.
"City-wise, MMR also topped in new supply with approx. 36,250 units added in Q3 2023 - a modest 1 percent annual growth. Hyderabad, on the other hand, saw a 60 percent yearly rise in supply with approx. 24,900 units added in this period,” he added.
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