The festive season in 2023 is set to break a three-year record in residential sales, exceeding the 1.5-lakh-unit mark in H2 of 2023, a report by CBRE stated on November 8.
The report India Market Monitor Q3 2023 said that overall residential sales across price categories exceeded 2.3 lakh units between January and September 23, registering a Y-o-Y growth of about 5 percent. In H2 of 2022, 1.47 lakh units were launched, and 1.14 lakh units in H1 of 2023, the report added.
The report said that the luxury housing segment in India, comprising units priced at Rs 4 crore and above, maintained strong sales momentum, registering a 97 percent Y-o-Y increase in the January to September 2023 period. Total sales of luxury units during the January-September 2023 period stood at approximately 9,200 compared to 4,700 units during the same period last year, it said.
Among the leading cities, Delhi-NCR, Mumbai, and Hyderabad emerged as the top three markets dominating sales, cumulatively accounting for nearly 90 percent of the total luxury housing sales across the top seven cities.
Delhi-NCR topped with a share of about 37 percent. This was followed by Mumbai, Hyderabad, and Pune, accounting for approximately 35 percent, 18 percent and 4 percent respectively.
Over 80,000 residential units were sold during the July-September 2023 quarter, while new unit launches stood at 72,000 during the same period. Mumbai, Hyderabad and Pune dominated the market for apartment launches, having a cumulative share of 63 percent. Further, Pune, Mumbai, and Bangalore accounted for the maximum sales of residential units in the quarter gone by, accounting for a cumulative share of about 62 percent.
High-end and premium categories remained key sales drivers with a cumulative share of 35 percent, while the mid-end category’s share stood at 46 percent during this quarter.
The seven cities that formed part of the report included Delhi-NCR, Mumbai, Hyderabad, Pune, Bengaluru, Kolkata and Chennai.
"We anticipate the overall housing market to be further bolstered by the ongoing festive season in the coming months of 2023. With the pause in the interest rate cycle, incentives and schemes offered by developers in the festive season are likely to boost sales further," Anshuman Magazine, Chairman and CEO - India, South-East Asia, Middle East & Africa, CBRE, said.
Festive season to attract first-time homebuyers
The October-December quarter is poised to attract a substantial number of first-time buyers, with fence-sitting end-users expected to make decisions during the festive season offers and discounts, Magazine added.
CBRE report found that both sales and new launches could reach a 10-year high in 2023, touching or even exceeding the 3-lakh-unit mark. The capital value growth is expected to see divergent trends among specific regions and property categories and is likely to be governed by unsold inventory levels and inventory overhangs.
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