Housing sales in India’s top 7 cities reached a new peak in Q2 2023, with over 1.15 lakh units sold, a 36 percent year on year increase.
Housing sales in India’s top 7 cities reaches new peak in Q2 2023, over 1.15 lakh units sold,36 percent increase
Housing sales in India’s top 7 cities reached a new peak in the second quarter of 2023, with over 1.15 lakh units sold, according to ANAROCK Research data.
Strong Year-on-Year Growth and Marginal Quarter-on-Quarter Increase
There was a 36 percent year-on-year increase in housing sales compared to approximately 84,940 units sold in 2022. There was a modest 1 percent quarter-on-quarter growth.
Pune and MMR lead the sales growth
Pune and the Mumbai Metropolitan Region (MMR) were the driving forces behind the robust sales performance. Together, these two cities accounted for over half that is 51 percent of the total housing sales in the top 7 cities. Around 58,770 units were sold altogether in these cities. Pune emerged as the leader, witnessed 65 percent year-on-year jump in housing sales.
New Launches surpass one lakh mark, though with a quarterly dip
The second quarter of 2023 witnessed a significant increase in new housing project launches. The number of new units introduced exceeded one lakh that showed 25 percent year-on-year growth from 82,150 units in Q2 2022 to over 1,02,610 units in Q2 2023. However, there was a slight 6 percent decline compared to the previous quarter.
MMR and Pune dominates new supply, Hyderabad faces a decline
In terms of new supply, MMR and Pune remained at the forefront, contributing approximately 63 percent of the total new launches in the top 7 cities. The two cities saw 31 percent and 29 percent yearly increase in their new supply, respectively.
MMR unveiled around 43,390 units, while Pune introduced 21,350 units. On the other hand, Hyderabad experienced a 51 percent decline in new launches, with 10,470 units introduced in Q2 2023.
Bengaluru experienced a decline of 9 percent and added around 11,440 units in Q2 2023.
NCR experienced an increase of 52 percent in new launches against Q2 2022 and added around 8,460 units in Q2 2023.
Chennai saw an yearly increase of 71 percent over Q2 2022 and added around 5,040 units in Q2 2023.
Kolkata saw an increase of 22 percent over Q2 2022 and added around 2,460 units in Q2 2023.
Mid-segment homes prevail, followed by premium and luxury segments
The mid-segment housing, priced between INR 40 lakh and 80 lakh, continued to dominate the market, capturing a significant 31 percent share of the new supply. The premium segment (INR 80 lakh – INR 1.5 crore) and luxury segment (above INR 1.5 crore) followed with shares of 27 percent and 23 percent, respectively.
Inventory experiences slight decline, average property prices rise
Despite the addition of new housing units, the available inventory in the top 7 cities experienced a marginal 2 percent decrease compared to the previous year. The total inventory reduced from 6.25 lakh units in Q2 2022 to over 6.14 lakh units in Q2 2023. NCR witnessed the highest yearly decline of 21percent amid reduced new supply.
Average property prices across the top 7 cities witnessed an overall 6 to 10 percent year-on-year increase, with Hyderabad leading the pack with a 10 percent jump.
Sales Overview
In Q2 2023, approximately 1,15,110 housing units were sold across the top 7 cities, marking a significant 36 percent increase compared to Q2 2022. Among these cities, Pune experienced the highest growth with a 65 percent rise in housing sales, followed by MMR and Bengaluru with increases of 48 percent and 31 percent respectively. NCR was the only city to see single-digit growth that is 7 percent in housing sales, while Kolkata, Chennai, and Hyderabad recorded increases of 20 percent, 44 percent, and 21 percent respectively.