- Total sales increased 14% from Q1 2022 in the top 7 cities.
- New launches in the top 7 cities saw a year-over-year increase of 23%.
- Average house prices in the top 7 cities are rising by 6-9%.
Despite global economic uncertainties, including layoffs at several large and small companies, the bull run in the Indian housing market continued in the January to March 2023 quarter (Q1 2023).
Quarterly home sales have been at an all-time high over the past decade, with approximately 1,13,770 units sold in the first quarter of 2023 in the top 7 cities, according to research data from real estate consultancy Anarock. This is an annual increase of 14% from approximately 99,550 units sold in Q1 2022. NCR, MMR, Bengaluru, Pune and Hyderabad together accounted for 89% of sales in the quarter.
Anuj Puri, Chairman of the Anarock group, says: “The housing market winning streak continued in the first quarter of 2023, with home sales in top cities breaking the previous high of Q1 2022. rise in demand for high ticket price houses (homes costing more than ₹1.5 crore).
Despite a large number of new launches in this and the previous quarter, available inventory in the top 7 cities remained almost flat at around 6.27 lakh units by the end of Q1 2023. On a sequential basis, unsold shares saw a drop of 1% in the top 7 cities. Among the top cities, NCR saw the largest drop in its unsold inventory in the January to March quarter 2023, dropping 22%.
“The housing sector is experiencing strong sales due to increased affordability over the years. We expect to close this fiscal year with the highest number of homes sold since our inception. Despite an increase in home loan interest rates, there has been minimal impact on demand across the country. We expect demand in the housing sector to continue for at least a few more years,” said Pradeep Aggarwal, founder and chairman of Signature Global (India), commenting on the Anarock report.
However, Puri added that lingering inflation concerns and a possible rate hike by the RBI in the near future could hurt the growth trajectory of the housing market over the next two quarters.
Average housing prices in the top 7 cities increased by 6-9% in the first quarter of 2023 compared to the first quarter of 2022, mainly due to the increase in construction raw material prices and the general increase in demand . MMR and Bangalore recorded the highest annual jump of 9%.
New launches in the top 7 cities see a 23% annual increase
New launches in the top 7 cities also crossed the one lakh mark and witnessed a 23% annual increase – 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 in the top 7 cities.
Separately, the two cities saw 58% and 34% annual increases in their new offerings, respectively. MMR saw around 37,260 units launched in Q1 2023 – a significant increase of almost 58% from Q1 2022. More than 62% new offerings were added in the budget segment under ₹80 lakh.
On the other hand, Pune added new stock of about 19,420 units in Q1 2023 compared to 14,490 units in Q1 2022 – an increase of 34%. ·
Chennai added about 6,410 units in the first quarter of 2023, an annual increase of a staggering 110% over the first quarter of 2022. It was the only city to record triple-digit growth in new supply.
While Hyderabad added about 14,620 units in Q1 2023, an annual decline of 32%, Bangalore added about. 13,560 units in Q1 2023, annual increase of only 3%. NCR saw a 34% increase in new launches over Q1 2022 with approximately 12,450 units launched in Q1 2023, while Kolkata added approximately 5,850 units in Q1 2023, a 50% increase over Q1 2022. Approximately 70% new stock was added in the mid range priced between ₹40 lakh-₹80 lakh.