 "Residential sales between January and June touched 15-year-high: JLL report")
The sales of homes in India touched a 15-year-high of 126,587 units in the first six months of 2023, according to data released by real estate consultancy JLL on Monday. This is 21 per cent higher than the same period last year.
According to JLL, the sales are primarily driven by a "resilient domestic economy" and "stable job environment". Each quarter, one ending on March 31 and another on June 30, recorded sales of over 62,000 homes.
"Notably, the second quarter saw sales of over 64,500 units, representing a significant 4 per cent quarter-on-quarter growth. It is interesting to observe that residential sales have consistently reached new peaks in each successive quarter over the past year. Aligning with this trend, the second quarter surpassed the previous historic high achieved in the first quarter, making it the highest quarterly sales since 2008," JLL said.
It added that 2023 is poised to be a "record-breaking" period for the residential market in India.
The highest residential sales were recorded in Bengaluru at 26,625 units. It was followed by 26,188 units in Mumbai and 25,201 units in Pune.
The jump in sales was mainly driven by Hyderabad and Pune, which saw a jump of 69 per cent and 50 per cent, respectively, in the first six months of 2023. The number of houses sold in Hyderabad jumped from 9,449 units in the first half of 2022 to 15,925 units in 2023. In Pune, the sales rose from 16,802 units to 25,201 units.
Chennai was another city that saw a healthy jump in sales of 47 per cent, from 4,968 units to 7,319 units.
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"The government's strong push, coupled with the Reserve Bank of India's decision to pause the repo rate in the last two instances, along with moderate inflation, have played a pivotal role in revitalizing the residential market," said Siva Krishnan, senior managing director and head of Residential, India at JLL.
"With the upcoming festive season and positive customer sentiment, we anticipate the residential market to reach new heights in the second half of the year."
Notably, the older inventory launched before 2018 and is nearing completion is also seeing traction.
According to JLL, developers are focusing on the timely completion of these ongoing projects, leading to an increased interest in them. In the first half of 2023, around 12 per cent of the sales were contributed by projects that were launched before 2018.
"Various factors are contributing to this bull run -- pent-up demand, people considering home ownership aggressively after the pandemic and the overall revival in the Indian economy," said Atul Bansal, director of Finance at Omaxe Ltd.
Homes priced between Rs 50 lakh and Rs 75 lakh see higher traction
The homes priced between Rs 50 lakh and Rs 75 lakh saw the highest sales of 30,125 units in the first six months. It was followed by houses priced above Rs 1.5 crore at 26,011 units and 24,482 units of homes priced below Rs 50 lakh.
The highest jump in sales, at 67 per cent, was noted in the homes priced between Rs 1 crore and Rs 1.5 crore.
"In recent years, the luxury real estate market in India has undergone a remarkable transformation. The top residential markets in the country have consistently performed well, with sales witnessing an upward trend in the past few quarters. This growth can be attributed to the robust demand across all price brackets, particularly in the mid and premium housing segments. The strong desire to own properties and the stability in home loan interest rates have further fueled the sales momentum," said Mohit Jain, managing director at Krisumi Corporation.