- Overall sales increased by 14% over Q1 2022 across top 7 cities.
- New launches in top 7 cities witnessed a 23% yearly rise.
- Average residential property prices across the top 7 cities increase 6-9%.
Despite global economic uncertainties, including layoffs by several large and small companies, the bull run in the Indian housing market continued in the January to March quarter 2023 (Q1 2023).
According to the research data by real estate consultancy Anarock, quarterly housing sales are at an all-time high in the last decade, with approximately 1,13,770 units sold in Q1 2023 across the top 7 cities. This is a 14% yearly rise against approximately 99,550 units sold back in Q1 2022. NCR, MMR, Bengaluru, Pune, and Hyderabad together accounted for 89% sales in the quarter.
Says Anuj Puri, Chairman, Anarock group, “The residential market’s winning streak continued in the first quarter of 2023 with housing sales in top cities breaching the previous high of Q1 2022. The quarter has recorded the highest ever sales in the last decade amid significant rise in demand for high-ticket priced homes (homes costing more than ₹1.5 crore).
In spite of a high number of new launches in this and the previous quarter, the available inventory in the top 7 cities remained almost similar at about 6.27 lakh units by Q1 2023-end. On a sequential basis, unsold stock saw a 1% dip across the top 7 cities. Among the top cities, NCR saw the highest decline in its unsold stock in January to March quarter 2023 by 22%.
“The housing sector is experiencing strong sales due to increased affordability over the years. We anticipate closing this fiscal year with the highest number of housing units sold, since our inception. Despite a rise in home loan interest rates, there has been minimal impact on demand nationwide. We anticipate that the demand in the housing sector will continue for at least a few more years,” said Pradeep Aggarwal, founder & chairman, Signature Global (India), commenting on the Anarock report.
Puri however added that 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.
Average residential property prices across the top 7 cities increased in the range of 6-9% in Q1 2023 when compared to Q1 2022, mainly due to increase in the prices of construction raw materials and overall rise in demand. MMR and Bangalore recorded the highest 9% annual jump.
New launches in top 7 cities witness a 23% yearly rise
New launches across the top 7 cities also breached the one lakh mark and witnessed 23% yearly rise – from 89,140 units in Q1 2022 to over 1,09,570 units in Q1 2023.
Interestingly, Mumbai Metropolitan Region (MMR) and Pune again saw the maximum new supply, accounting for 52% of the total new launches across the top 7 cities.
Individually, the two cities saw 58% and 34% yearly increases in their new supply, respectively. MMR saw approximately 37,260 units launched in Q1 2023 – a significant increase of nearly 58% over Q1 2022. More than 62% new supply was added in the sub-₹80 lakh budget segment.
On the other hand, 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%. ·
Chennai added approximately 6,410 units in Q1 2023, a yearly increase of a whopping 110% over Q1 2022. It was the only city to see three-digit growth in new supply.
While Hyderabad added approximately 14,620 units in Q1 2023, a yearly decline of 32%, Bangalore added approximately. 13,560 units in Q1 2023, 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, while Kolkata added approximately 5,850 units in Q1 2023, an increase of 50% over Q1 2022. Approximately 70% new supply was added in the mid segment priced between ₹40 lakh-₹80 lakh.