Despite increasing home-loan rates and global economic headwinds, including layoffs by several large and small corporates, the bull run in the Indian housing market continued in the second quarter of calendar year 2023 with approximately 1.15 lakh units getting sold across top seven cities, research data by Anarock has said.
This is a 36 percent yearly rise from the 84,940 units sold in Q2 of CY2022.
The top seven cities include NCR, MMR, Bengaluru, Pune, Hyderabad, Chennai and Kolkata.
“The housing market is yet to feel the impact of the home-loan rate hike early this year, and of the global economic headwinds. It continues to be on a roll with the momentum remaining strong even in the second quarter of 2023,” said Anuj Puri, Chairman, Anarock Group.
MMR, Pune lead the show
MMR and Pune accounted for over 51 percent of the total sales, with Pune witnessing the highest yearly jump of 65 percent. As many as 58,770 units were sold altogether in these cities.
Approximately 1,15,110 units were sold in Q2 of CY 2023 across the top 7 cities – an increase of 36 percent over Q2 CY2022. NCR, MMR, Bengaluru, Pune, and Hyderabad together accounted for 90 percent sales in the quarter.
NCR is the only city to see just a single-digit yearly growth (7 percent) in housing sales among all cities – from 15,340 units in Q2 CY2022 to nearly 16,450 units in Q2 CY2023.
MMR and Bengaluru saw housing sales increase by 48 percent and 31 percent, respectively, in Q2 of CY 2023 against Q2 of CY2022, with approximately 38,090 and 15,050 units sold, respectively. Chennai saw approximately 5,490 units being sold in Q2 of CY2023-- increasing by 44 percent against Q2 of CY2022.
Hyderabad recorded sales of approximately 13,570 units in Q2 of CY2023, a spike of 21 percent over the corresponding quarter the previous year.
Average residential property prices across the top 7 cities increased in the range of 6-10 percent in Q2 of CY2023, compared to Q2, mainly due to the increase in the prices of construction raw materials and overall rise in demand. Hyderabad recorded the highest 10 percent annual jump and stands at Rs 4,980 per sq ft, as of Q2 CY 2023-end.
Available inventory
Amidst robust sales, available inventory across the top seven cities reduced by 2 percent on a yearly basis to approximately 6.14 lakh units as of Q2 CY 2023-end. NCR witnessed the highest yearly decline of 21 percent amidst reduced new supply -- from more than 1.41 lakh units as of Q2 2022 end to nearly 1.11 lakh units as of Q2 2023-end.
Project launches
Meanwhile, project launches across the top seven cities once again breached the 1-lakh mark and witnessed a 25 percent yearly rise – from 82,150 units in Q2 CY 2022 to over 1,02,610 units in Q2 CY2023.
Interestingly, MMR and Pune saw the maximum new supply, accounting for 63 percent of the total new launches. Individually, the two cities saw 31 percent and 29 percent yearly increase in their new supply, respectively.
MMR saw approximately 43,390 units launched in Q2 2023 – increasing by 31 percent over Q2 2022. More than 61 percent new supply was added in the sub-Rs 80 lakh budget segment. Pune added new supply of approximately 21,350 units in Q2 2023, compared to 16,560 units in Q2 2022 – an increase of 29 percent. Hyderabad added approximately 10,470 units in Q2 2023, a yearly decline of 51 percent over the corresponding period last year.
Over 43 percent new supply in Q2CY2023 was added in the high-ticket price segment priced more than Rs 1.5 crore. Bengaluru added approximately 11,440 units in Q2CY2023, declining yearly by 9 percent. Approximately 68 percent new supply was added in the mid-range and premium segments combined, i.e., the Rs 40 lakh to Rs 1.5 crore price bracket. NCR saw an increase of 52 percent in new launches against Q2 2022 with approximately 8,460 units launched in Q2 2023, the research noted.
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