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Housing Sales Up 14% In Q1 Across The Top 7 Cities

By Rishabh Chamoli | 2023-03-29

According to recent data from property consultancy firm Anarock, the Indian real estate market is experiencing a surge in housing sales, with a 14% increase in the first quarter of 2023 in the top seven cities. The data indicates that despite a 6 to 9% increase in prices, sales of over 113,000 units were recorded, the highest quarterly sales in the last decade. Mumbai Metropolitan Region (MMR) and Pune contributed 48% to total sales. However, Delhi-NCR is the only city likely to witness a decline in sales during the first quarter of this calendar year.

Anarock Chairman Anuj Puri warned that there could be short term challenges ahead, saying, Persistent inflation concerns along with another possible rate hike by the RBI in the near future could dent the housing markets growth trajectory in the upcoming two quarters.

Despite potential headwinds, fresh launches in the top seven cities rose by 23% annually, with over 109,000 units released in Q1 2023. MMR and Pune led the new supply, accounting for 52% of all new releases in the top seven cities, with annual gains of 58% and 34%, respectively.

In terms of new launches,

MMR saw approximately 37,260 units launched in Q1 2023 a significant increase of nearly 58% over Q1 2022.
Pune added a new supply of approximately 19,420 units in Q1 2023 compared to 14,490 units in Q1 2022 an increase of 34%.
Hyderabad, however, added approximately 14,620 units in Q1 2023, a yearly decline of 32% over the corresponding period last year.
Bangalore added approximately 13,560 units in Q1 2023, a yearly increase of just 3%.
NCR saw an increase of 34% in new launches against Q1 2022 with approximately 12,450 units launched in Q1 2023.
Chennai added approximately 6,410 units in Q1 2023, a yearly increase of 110% over Q1 2022.
Kolkata added approximately 5,850 units in Q1 2023, an increase of 50% over Q1 2022.

In terms of housing sales,

Pune saw 19,920 units sold in Q1 2023, increasing by 42% over Q1 2022.
NCR is the only city to see a decline (of 9%) in housing sales among all cities, with sales dropping from 18,835 units in Q1 2022 to nearly 17,160 units in Q1 2023.
Housing sales in Kolkata increased by 3% over Q1 2022, with approximately 6,180 units sold in Q1 2023.
MMR and Bangalore saw housing sales increase by 19% and 16%, respectively, in Q1 2023 against Q1 2022, with approximately 34,690 and 15,660 units sold, respectively.
Chennai saw approximately 5,880 units sold an increase of 18% over Q1 2022.
Hyderabad recorded sales of 14,280 units in Q1 2023, a spike of 9% over Q1 2022.

Comparing Q1 2023 to Q1 2022, the average residential property prices across the top 7 cities grew between 6 and 9%, primarily as a result of rising demand and the cost of construction related raw materials. The maximum 9% annual increase was reported in MMR and Bangalore.

However, Puri stated that while there are challenges ahead, the housing market is likely to regain momentum, driven by a rise in homeownership sentiment, once the dust of the ongoing economic disruptions settles.

The surge in Indian real estate sales in Q1 2023 is primarily driven by rising homeownership sentiment, a significant increase in new supply, and favourable government policies such as reduced stamp duty rates and the extension of tax benefits for affordable housing projects. Additionally, the ongoing pandemic has spurred demand for larger homes with more amenities as people continue to work and study from home.