India to register highest home sales since 2008 in 2023: JLL report

In the first 9 months of 2023, the highest sales were reported in the mid-segment homes, with a ticket size of Rs 50-75 lakh

In 2023, India is set to register the highest home sales since 2008, according to a new report by real estate consultancy JLL India released on Thursday. In the current calendar year, India is expected to record home sales of 260,000 units, the highest since 2008.

In its "2023: A Year in Review" report, JLL said that home sales in the first 9 months of 2023 reached 196,227 units, 91 per cent of the total sales in 2022.

"It is interesting to note that residential sales broke all records with average quarterly sales of over 65,000 units till the third quarter of 2023," it said. In 2024, home sales are expected to be in the range of 290,000-300,000 units.

 

"There is a possibility of a policy rate cut in 2024 provided the GDP growth and inflation support such a stance of RBI. In that scenario, we would likely see a further growth trajectory in the residential sector," said Samantak Das, chief economist and head of research at JLL India.

"Also, the sales guidance shared by various established developers reflect robust sales which are expected to get a healthy response from the buyers," he said.

The highest sales were reported in mid-segment homes, with a ticket size of Rs 50-75 lakh. In the first 9 months of 2023, 45,592 units of these homes were sold in India. It was followed by 42,919 units of premium homes (between Rs 1.5 crore and 3 crore) and 38,307 units in low-segment homes (below Rs 50 lakh).

However, the share of the premium segment in overall sales increased from 18 per cent in the first 9 months of 2022 to 22 per cent during the same period in 2023. The luxury segment (above Rs 3 crore) also witnessed an 83 per cent surge in sales from 8,013 units in the first nine months of 2022 to 14,627 units in the first nine months of 2023.

"With homebuyers upgrading to bigger sized homes, developers are launching such projects taking cognizance of this demand trend," the consultancy said.

On the developers' side, JLL said that between January and September 2023, there was a significant increase in launches, reaching a record of 223,905 units, 21.5 per cent higher than in 2022.

"It is anticipated that by the end of 2023, we can expect around 280,000 launches. Furthermore, the robust supply pipeline from reputable developers indicates that the launches will continue to be strong in 2024, with an estimated range of 280,000-290,000 units," it said.