The first quarter of the calendar year 2023 has seen record residential sales in a decade, beating the previous high in the first quarter of 2022, with MMR and Pune accounting for over half the total sales in top seven cities, with mid-segment homes dominating the supply.
Despite global economic headwinds, including layoffs by several large and small corporates, the bull run in the Indian housing market continued in the first quarter of the year. Quarterly housing sales are at an all-time high in the last decade, breaching the one lakh mark ( 1,13,770 units ) sold between January and March 2023 across the top 7 cities.
According to a latest Anarock research report, home sales have seen . 14% yearly rise against nearly. 99,550 units sold back in Q1 2022.The two leading western markets MMR and Pune accounted for over 48% of the total sales in the top 7 cities, with Pune witnessing an over 42% yearly jump..
New launches across the top 7 cities also breached the one lakh mark and witnessed 23% 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% of the total new launches across the top 7 cities. Individually, the two cities saw 58% and 34% yearly increases in their new supply, respectively.
Despite spiralling new launches in this and the previous quarter, the available inventory in the top 7 cities remained almost similar at about 6.27 lakh units by Q1 2023-end. On a q-o-q basis, unsold stock saw a 1% dip across the top 7 cities. Among the top cities, NCR saw highest decline in its unsold stock in Q1 2023 – by 22%.
According to Anuj Puri, Chairman Anarock Group,the residential market’s winning streak continued in the first quarter of 2023 with housing sales in top cities breaching the previous high of Q1 2022. The quarter has recorded the highest ever sales in the last decade amid significant rise in demand for high-ticket priced homes costing over Rs 1.5 crore.
“However, emerging headwinds, according to Puri could pose a challenge in the short-term,. “Persistent inflation concerns along with another possible rate hike by the RBI 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.”
New Launch Overview
The top 7 cities recorded new launches of around 1,09,570 units in Q1 2023 against 89,140 units in Q1 2022, increasing by 23% over the previous year’s corresponding period. The key cities contributing to new launches in Q1 2023 included MMR (Mumbai Metropolitan Region), Hyderabad, Pune, and Bengaluru, together accounting for 77% supply addition.
Source: ANAROCK Research
Overall Sales Overview
Nearly 1,13,770 units were sold in Q1 2023 – an increase of 14% over Q1 2022. NCR, MMR, Bengaluru, Pune, and Hyderabad together accounted for 89% sales in the quarter.
Source: ANAROCK Research
Average residential property prices across the top 7 cities increased in the range of 6-9% in Q1 2023 when compared to Q1 2022, mainly due to increase in the prices of construction raw materials and overall rise in demand. MMR and Bangalore recorded the highest 9% annual jump.
Despite massive new supply being added to the top 7 cities in Q1 2023, available inventory stayed more or less static in Q1 2023 as compared to Q1 2022. The total available inventory in the top 7 cities as of Q1 2023-end stands at approximately. 6.27 lakh units. NCR witnessed the highest reduction in available inventory in Q1 2023 when compared to Q1 2022 – by 22%.