Despite the monsoon quarter which usually sees slower market momentum, housing sales across the top seven cities surged to another new peak with approx. 1,20,280 units sold in Q3 CY2023 (July-September), against approx. 88,230 units in Q3 CY2022. This denotes a staggering 36% annual sales growth and a modest 5% quarterly growth, according to the latest data by property consultant ANAROCK.
The seven cities are MMR, NCR (National Capital Region), Pune, Bengaluru, Chennai, Hyderabad and Kolkata.
Among the top seven cities, MMR (Mumbai Metropolitan Region) recorded the highest housing sales of approx. 38,500 units, followed by Pune with approx. 22,880 units. Cumulatively, the two western cities accounted for 51% of total sales seen across the top 7 cities in Q3 2023. In terms of growth, MMR saw a 46% annual rise in housing sales, while Pune saw a massive 63% yearly jump. When combined with Bengaluru and Hyderabad, the four cities accounted for 91% of the sales in the quarter.
The top seven cities also witnessed significant new supply with over 1,16,220 units added in the April-June quarter, against 93,490 units in the corresponding period of 2022 - a 24% annual supply increase.
City-wise, MMR also topped in new supply with approx. 36,250 units added in Q3 2023 - a modest 1% annual growth. Hyderabad, on the other hand, saw a 60% yearly rise in supply with approx. 24,900 units were added in this period.
In terms of budget segments, the mid-range segment (homes priced between INR 40–80 lakh) continued to dominate with a 28% share of the total new supply in Q3 2023. The luxury segment (homes priced >INR 1.5 Cr) and premium segment (INR 80 lakh – INR 1.5 Cr) were close behind with a 27% share each.
Despite increased new supply, existing housing inventory saw a 3% yearly decline across the top seven cities – from approx. 6.30 lakh units by Q3 2022-end to approx. 6.10 lakh units as of Q3 2023-end.
Average residential prices in the top seven cities collectively saw double-digit growth of 11% in Q3 2023 against Q3 2022. At 18%, Hyderabad witnessed the highest yearly average residential price growth, followed by Bengaluru with a 14% annual rise.
The continued healthy sales momentum is at least partially attributable to the repo rate pause maintained by the RBI in the two recent monetary policies. This has kept home loan interest rates stable, keeping housing purchase sentiment high.
“Considering the overall present economic scenario, the momentum in housing sales and new launches across the top 7 cities is expected to continue in the October-December quarter," said Anuj Puri, Chairman - ANAROCK Group. “Many of the large and branded developers have a healthy pipeline of new project launches in the upcoming festive quarter across the top 7 cities. With homebuyer demand remaining firmly skewed towards projects by branded developers, these players may see record sales yet again,” added Puri.