Housing sales in top seven Indian cities stood at 1.14 lakh units in the first quarter (Q1) of 2023, an increase of over 99,500 units compared to the same period of 2022, real estate consultant ANAROCK said in a study.
Around 24 per cent of the total units sold were in the high-ticket segment, priced at above Rs 1.5 crore. The Mumbai Metropolitan Region and Pune accounted for 48 per cent of the sale, with Pune recording a 42 per cent yearly jump.
New Launches
New launches have also breached the one lakh mark, rising 23 per cent year-over-year (Y-o-Y) to around 1.10 lakh units in Q1, 2023, from 89,140 units in Q1, 2022.
MMR and Pune again accounted for 52 per cent of the new launches, followed by Hyderabad and Bangalore. MMR launched 37,260 units in Q1, 2023, an increase of about 58 per cent over Q1, 2022. More than 62 percent of new supply was in the sub-80 lakh segment.
Hyderabad added 14,620 units in Q1 2023, a yearly decline of 32 percent. Over 52 percent of the new supply was added in the Rs. 1.5 crore segment.
There were approximately 13,560 new units delivered in Bangalore in Q1 2023, up only 3 per cent y-o-y, with 74 per cent of new supply priced between Rs 40 lakh and Rs 1.5 crore.
This suggests that the bull-run in the Indian housing market was not affected by global economic headwinds, including layoffs by several large and small corporates.
However, the available inventory in the top seven cities remained almost unchanged at 6.27 lakh units by the end of Q1 2023, a decrease of only 1 per cent from Q1 2022.
The National Capital Region (NCR) had the largest decline in unsold stock, by 22 per cent. However, NCR is the only region to witness a decline in housing sales (9 per cent decline).
Price Movement
A rise in the prices of construction raw materials and a general increase in demand pushed the property prices by 6 to 9 per cent in the top 7 cities in Q1 2023, compared to Q1 2022. It was MMR and Bangalore that recorded the highest 9 percent increase.
Anuj Puri, chairman of ANAROCK Group, acknowledges the bull-run in the housing market but says, “The emerging headwinds could pose a challenge in the short-term. Persistent inflation concerns along with another possible rate hike by the RBI in the near future could dent the housing market’s growth trajectory in the upcoming two quarters.”
“Once the dust of the ongoing economic disruptions settles, it is likely to regain again, backed by a rise in homeownership sentiment,” he added.
