Pune, Ahmedabad and Mumbai dominate housing sales with 61% share in Q2 of CY2023: Report

A total of 80,250 units were sold in 8 cities in Q2 of CY2023, compared to 74,320 in the year-ago quarter, showing a growth of 8 percent,

Real-estate markets in western India sustained the property sales rally, with Pune, Mumbai, and Ahmedabad taking up a 61 percent share in Q2 of CY2023. Sales and new supply witnessed a growth of 8 percent and 11 percent year-on-year (YoY), respectively, across eight major cities in the country, said a report by PropTiger.com.

The eight cities are Ahmedabad, Bengaluru, Chennai, Hyderabad, Kolkata, Mumbai Metropolitan Region, Delhi-National Capital Region, and Pune.

How the cities fared

A total of 80,250 units were sold in the eight cities in Q2 of CY2023, compared to 74,320 in the year-ago quarter, showing a growth of 8 percent, said the Real Insight Residential – April-June 2023 report, a quarterly analysis of India's top eight residential markets by the REA-backed PropTiger.com.

Housing sales in Ahmedabad increased 17 percent to 8,450 units during the April-June period of CY2023 to 7,240 units in the year-ago period. Mumbai Metropolitan Region (MMR) saw a 16 percent increase in sales to 30,260 units during the April-June period of CY2023 from 26,160 units in the year-ago period.

In Pune, sales increased 37 percent during Q2 of CY2023 to 18,850 units from 13,720 units in Q2 of C2022.

Bengaluru saw a 19 percent decline in sales to 6,790 units from 8,350 units, while Chennai witnessed a 5 percent fall to 3,050 units from 3,210 units.

Housing sales in Delhi NCR fell 28 percent to 3,230 units from 4,510 units. Hyderabad, too, witnessed a 3 percent drop in demand to 7,680 units from 7,910 units. Housing sales in Kolkata decreased 40 percent to 1,940 units from 3,220 units.

Mumbai and Pune continue to record maximum traction, taking a combined share of 61 percent in overall sales in Q2 CY2023.

Mumbai leads new supply

On the residential supply front, realtors launched 113,770 units, an increase of 11 percent, compared to 102,140 in the April-June quarter of 2022. Mumbai has been the frontrunner in terms of new supply, followed by Pune and Ahmedabad.

“The western markets sustained the rally as Mumbai and Pune witnessed a considerable growth in demand in the second quarter. These cities take a combined share of 61 percent from the national sales tally, boosted primarily by demand in localities such as Thane West and Dombivali in Mumbai and Charholi Budruk and Hadapsar in Pune. This surge in demand is driven by end users seeking improved amenities and an enhanced lifestyle,” said Ankita Sood, Head of Research, REA India (PropTiger.com, Housing.com & Makaan.com).

During Q2 of CY 2023, 15 percent of the residential units sold were classified as ready-to-move-in, while the remaining 85 percent were still under construction.

The majority of sales, comprising 27 percent, were concentrated in the price range of Rs 45-75 lakh, closely followed by the price range of over Rs 1 crore, which accounted for 25 percent of the overall sales.

The largest portion of new residential units introduced in Q2 CY2023 was focused on the Rs 45-75 lakh price range, accounting for the highest share of 33 percent among all launches. Notably, units priced at over Rs 1 crore constituted a significant portion, representing nearly 29 percent of the total, the report said.

"India’s top eight residential markets continue on a growth path with sales rising by 8 percent in the June quarter. The RBI's decision to pause the hike in the key lending rate helped in sustaining strong positive sentiments for buying residential properties," said Vikas Wadhawan, group CFO, REA India & Business Head PropTiger.com.

"The driving factors behind the uptick in housing sales over the last two years are pent-up demand from the COVID-affected period, growing appetite for home ownership, revival in the economy, post-pandemic, and the evolving need for more spacious homes. We anticipate that the upward trend will persist, making the 2023 calendar year even better than the previous year in terms of sales performance," Wadhawan added.