By Team Homes | Wednesday, 28 June 2023

India's housing sales reached a record high in Q2 despite high loan rates and economic challenges

India's housing sales hit an all-time high in the second quarter, defying challenges such as soaring home loan rates and global economic uncertainties. Approximately 115,100 units were sold in the second quarter across India's top seven cities, according to the latest data from ANAROCK Research. This represents a significant 36% increase compared with about 84,940 units sold in year-earlier period.

Among the top seven cities, Mumbai Metropolitan Region (MMR) and Pune accounted for over 51% of the total sales, with Pune witnessing the highest yearly jump of 65%. The combined sales in these cities amounted to 58,770 units.

New property launches across the top seven cities crossed the one lakh mark once again, with a 25% increase compared to the previous year. The number of units launched rose to over 102,610 in Q2 2023 from from 82,150 in Q2 2022.

MMR and Pune led the way in terms of new supply, accounting for 63% of the total launches in these cities. Individually, both cities saw a yearly increase in new supply, with MMR experiencing a 31% rise and Pune seeing a 29% increase.

"The housing market is yet to feel the impact of the home loan rate hike early this year, and of the global economic headwinds. It continues to be on a roll with the momentum remaining strong even in the second quarter of 2023," said Anuj Puri, chairman of ANAROCK Group.

"Pune and MMR were the only two cities to see quarterly rise in housing sales  of 4% and 10% respectively while other cities saw some dip. But on yearly basis, most top 7 cities saw significant jump in housing sales," he added.

In the second quarter, the total number of new launches across the top seven cities reached approximately 102,610 units, a 25% on year increase. The major contributors to this increase were MMR, Hyderabad, Pune, and Bengaluru, which together accounted for 84% of the new supply. MMR witnessed a 31% increase in new launches, with approximately 43,390 units introduced in Q2 2023. Over 61% of the new supply fell within the budget segment of under Rs 80 lakh.

Pune added around 21,350 units, marking a 29% increase from last year, when 16,560 units were launched. Hyderabad experienced a decline in new supply, with approximately 10,470 units added in the second quarter, representing a 51% drop compared to the same period last year. However, more than 43% of the new supply in the second quarter belonged to the high-ticket price segment, priced above Rs 1.5 crore.

Bengaluru added approximately 11,440 units in the reported quarter, experiencing a slight annual decline of 9%. Around 68% of the new supply fell within the mid-range and premium segments, with prices ranging from Rs 40 lakh to Rs 1.5 crore. NCR saw a significant increase of 52% in new launches compared to the second quarter of last year, with approximately 8,460 units introduced this year in Q2.

Chennai witnessed a substantial yearly increase of 71% in new launches, with approximately 5,040 units added in the quarter. Kolkata experienced a 22% increase in new supply, with approximately 2,460 units launched in the second quarter. Around 76% of the new supply fell within the mid-segment category, priced between Rs 40 lakh and Rs 80 lakh.

The average residential property prices across the top seven cities witnessed a moderate increase of 6-10% in Q2, as compared to last year. This can be attributed to the rise in construction raw material costs and overall demand. Hyderabad recorded the highest annual jump of 10%, reaching Rs 4,980 per square foot by the end of Q2, 2023.

Despite the robust sales, the available inventory across the top seven cities decreased by 2% on a yearly basis, totaling approximately 6.14 lakh units by the end of Q2 2023. NCR experienced the highest annual decline of 21% in inventory due to reduced new supply, with the number of units decreasing from over 1.41 lakh at the end of Q2 2022 to nearly 1.11 lakh by the end of Q2 2023. This reduction is significant for this real estate hotspot

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