Housing sales in top seven cities hit decade-high
Chennai: Housing sales in top cities in the March quarter of 2023 breached the one-lakh mark to touch a record high in a decade at 1,13,770 units. The negative macroeconomic indicators do not seem to have affected the sector.
Quarterly sales were up 14 per cent against approx. 99,550 units sold in Q1 2022. Compared to Q4 of 2022 sales of 92,170 units, sales were 23 per cent sequentially higher in the March quarter, according to Anarock Research.
The two western markets — Mumbai and Pune — led the sales and accounted for over 48 per cent of the total sales in the top 7 cities, with Pune witnessing an over 42 per cent yearly jump.
New launches across the top seven cities also breached the one lakh mark and witnessed 23 per cent yearly rise — from 89,140 units in Q1 2022 to over 1,09,570 units in Q1 2023. Interestingly, MMR and Pune again saw the maximum new supply, accounting for 52 per cent of the total new launches across the top seven cities.
Individually, the two cities saw 58 per cent and 34 per cent yearly increases in their new supply, respectively.
Chennai recorded 110 per cent increase in supply, Kolkata 50 per cent and National Capital Region 34 per cent. Bengaluru saw only a nominal growth of 3 per cent and Hyderabad was the only one among the top cities to witness a decline in supply — that too 32 per cent.
Higher sales and higher launches saw the inventory levels in top seven cities remain almost static. The available inventory in the top 7 cities remained almost similar at about 6.27 lakh units by Q1 2023-end. On a quarter-on-quarter basis, unsold stock saw one per cent dip across the top 7 cities. Among the top cities, NCR saw the highest decline in its unsold stock in Q1 2023 — by 22 per cent.
Average residential property prices across the top 7 cities increased in the range of 6-9 per cent in Q1 2023 when compared to Q1 2022, mainly due to increase in the prices of construction raw materials and overall rise in demand. Mumbai and Bengaluru recorded the highest 9 per cent annual jump.
“The quarter has recorded the highest ever sales in the last decade amid a significant rise in demand for high-ticket priced homes,” said Anuj Puri, chairman, Anarock Property Consultants.
“However, emerging headwinds could pose a challenge in the short-term. Persistent inflation concerns along with another possible rate hike by the
Reserve Bank of India in the near future could dent the housing market’s growth trajectory in the upcoming two quarters. Once the dust of the ongoing economic disruptions settles, it is likely to regain again, backed by rise in homeownership sentiment,” he said.
