Housing Markets Exhibit Strong Growth

India’s leading eight residential markets of Mumbai, Pune, Bangalore, Delhi-NCR, Chennai, Hyderabad, Kolkata, Ahmedabad have demonstrated robust growth, with a 22% increase in sales and a 17% rise in new supply during the third quarter of the calendar year.

According to a recent report by PropTiger.com, a leading digital real estate brokerage firm, sales of residential units have climbed to 1,01,220 units in the third quarter from 83,220 units in the same period last year.All cities, except Chennai, registered a growth in sales, with Mumbai Metropolitan Region (MMR) and Pune accounting for nearly half of the total volume. According to Vikas Wadhawan, the housing markets in the top eight cities continue to gain momentum with strong sales on account of pent-up demand, increased disposable income, stable interest rates, renewed investor demand and rising consumer sentiment.

Sales (Q3’23 vs Q3’22):

Source: Real Insight Residential – July-September 2023, Housing Research

*Note: Numbers rounded off to the nearest thousand.

The research data shows that Y-o-Y housing sales in Ahmedabad have risen 31 per cent to 10,300 units from 7,880 units.  Sales in Bengaluru have registered the maximum growth of 60 per cent to 12,590 units from 7,890 units. Delhi-NCR recorded sales growth of 44 per cent to 7,800 units from 5,430 units.  Hyderabad has witnessed a 34 per cent growth in sales to 14,190 units from 10,570 units. A 43 per cent growth in sales has been seen in Kolkata to 36,10 units from 2,530 units. Sales in Mumbai have witnessed only a modest 5 per cent increase to 30,300 units from 28,800 units because of a higher base. Sales in Pune have grown 18 per cent to 18,560 units from 15,700 units. Chennai is the only market that registered a decline in sales with unit sales dropping by 12 per cent to 3,870 units from 4,420 units.

Ahmedabad leading the new supply:

Source: Real Insight Residential – July-September 2023, Housing Research

*Note: Numbers rounded off to nearest thousand.

According to Wadhawan, the residential market is consolidating with demand centring around reputed developers, instilling confidence among homebuyers, especially for under-construction projects. In terms of trends, 14 percent of units sold were ready-to-move in segment and 31 percent of sales occured in the 1 crore plus price segment. Ankita Sood, Head of Research, PropTiger.com, Housing.com and Makaan.com says that despite global challenges, property markets in India are looking up as residential market is in an upcycle with Q3 seeing a surge in property sales by 22 percent which are set to reach new heights by the year end.