 "Housing market, Homes, Real estate, Realty")
Despite spiralling home loan rates in recent past and global economic headwinds including layoffs by several large and small corporates, the bull run in the Indian housing market has not ended yet.
Quarterly housing sales are at an all-time high with approximately 1,15,100 units sold in the second quarter of 2023 across Mumbai, NCR, Pune, Hyderabad, Bengaluru, Chennai and Kolkata, reveals latest ANAROCK Research data. This is a 36% yearly rise as against approximately 84,940 units sold back in Q2 2022.
NCR, MMR, Bengaluru, Pune, and Hyderabad together accounted for 90% sales in the quarter.
Mid-segment homes priced between Rs 40 lakh - 80 lakh continue to dominate new supply with 31% share, followed by premium (Rs 80 lakh – Rs 1.5 Cr) and luxury segments (>Rs 1.5 Cr) with 27% & 23% share, respectively.
NCR is the only city to see just a single digit yearly growth (of 7%) in housing sales among all cities – from 15,340 units in Q2 2022 to nearly 16,450 units in Q2 2023.
MMR and Bengaluru saw housing sales increase by 48% and 31% respectively in Q2 2023 against Q2 2022, with approx. 38,090 and 15,050 units sold, respectively.
New launches across the top 7 cities once again breached the 100,000 mark and witnessed 25% yearly rise – from 82,150 units in Q2 2022 to over 1,02,610 units in Q2 2023.
NCR saw an increase of 52% in new launches against Q2 2022 with approx. 8,460 units launched in Q2 2023.
NCR saw an increase of 52% in new launches against Q2 2022 with approx. 8,460 units launched in Q2 2023.
MMR and Pune again saw the maximum new supply, accounting for 63% of the total new launches across the top 7 cities. Individually, the two cities saw 31% and 29% yearly increase in their new supply, respectively.
Chennai saw approximately 5,490 units sold in Q2 2023 - increasing by 44% against Q2 2022.
Hyderabad recorded sales of approximately 13,570 units in Q2 2023, a spike of 21% over Q2 2022.
“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.
Pune and MMR were the only two cities to see quarterly rise in housing sales – of 4% and 10% respectively while other cities saw some dip. But on yearly basis, most top 7 cities saw significant jump in housing sales.
Average residential property prices across the top 7 cities increased in the range of 6-10% in Q2 2023 when compared to Q2 2022, mainly due to increase in the prices of construction raw materials and overall rise in demand. Hyderabad recorded the highest 10% annual jump and stands at Rs 4,980 per sq. ft. as of Q2 2023-end.
Amid robust sales, available inventory across the top 7 cities reduced by 2% on yearly basis to approximately 6.14 lakh units as of Q2 2023-end. NCR witnessed the highest yearly decline of 21% amid 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. This is a significant reduction in this realty hotspot.
"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 homeownership, 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," said Vikas Wadhawan, group CFO, REA India & Business Head PropTiger.com.
Data provided by Proptiger shows that during Q2 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.
