Mumbai and Pune accounted for 51 per cent of home sales among the top seven Indian cities in the third quarter (Q3) of 2023 as new supplies increased despite rising construction costs, property consultant ANAROCK said in a report.
House sales in the top seven Indian cities: Pune, Delhi NCR. Mumbai Metropolitan Region (MMR), Bengaluru, Hyderabad, Chennai, and Kolkata jumped 36 per cent to 1,20,280 units, year-on-year (YoY) in Q3, compared to 88,230 units in the same period a year ago. Despite rising costs and erratic monsoon, which affects crop production and can impact economic growth, India’s residential property sales remained unstoppable in Q3.
“Among the top 7 cities, Mumbai Metropolitan Region (MMR) recorded the highest housing sales with 38,500 units sold, followed by Pune at 22,880 units,” says Anuj Puri, chairman of ANAROCK Group. Collectively, these two western cities accounted for 51 per cent of the total sales in Q3 this year. MMR saw a 46 per cent annual growth in house sales, while Pune witnessed a massive 63 per cent jump, according to the report that analysed the seven cities.
The seven cities saw a substantial increase in new supply, adding more than 1,16,220 units in the quarter compared to 93,490 units in the corresponding period of 2022. MMR led in new supplies, with 36,250 units in Q3 2023, representing a 1 per cent annual growth.
Hyderabad, on the other hand, saw a 60 per cent annual rise in supply, with approximately 24,900 units added in the period. However, despite the increase in supplies, its existing housing inventory declined by 3 per cent from 6.30 lakh units to 6.10 lakh units. Mid-range homes, priced between Rs 40-80 lakh, accounted for a 28 per cent share of new supplies. The luxury segment was closely behind at 27 per cent.
The average prices of residential properties in the top 7 cities grew 11 per cent in Q3 compared to the same period a year ago. Hyderabad saw the highest yearly average price growth at 18 per cent, followed by Bengaluru at 14 per cent. The healthy sales momentum is partially attributable to the Reserve Bank of India’s (RBI) continued repo rate pause, and consequently, the stability in home loan interest rates has kept sentiments high for homebuyers, the ANAROCK release said.
Puri predicts that the sales momentum and the new launches are expected to continue in the October-December festive quarter.
Aman Sarin, director and CEO of Anant Raj Ltd., a real estate developer, adds that improved project deliveries, growing housing demand, supportive government policies, and rapid urbanisation have increased people’s confidence, prompting buying decisions. “Investors, too, have re-entered the housing market, attracted by promising returns in select projects,” Sarin said.
He predicts further growth in the real estate sector due to people’s increased disposable incomes.