New Benchmark in Housing Sales Value

The unstoppable Indian residential sector surpassed all previous highs in 2023 with housing sales creating a new peak quarter-on-quarter. Concurrently, the overall sales value of sold housing inventory also inched higher. Even before Q4 2023 sales numbers are collated, the strong sales momentum indicates that the total value of homes to have found buyers in 2023 will cross the INR 4.5 lakh Crore mark – 38% higher than the total sales value of the entire 2022, which saw INR 3.27 lakh Cr worth of homes sold.

In just the first nine months of 2023, the total residential property sales value is already 7% higher than the whole of last year, with the top 7 cities seeing inventory worth approx. INR 3,48,776 Cr sold in these 9 months. The entire 2022 saw approx. INR 3,26,877 Cr worth of inventory sold.

Between January and September 2023, approx. 3.49 lakh units were sold in the top 7 cities, against approx. 3.65 lakh units in entire 2022.

• MMR topped the list with approx. INR 1,63,924 Cr worth of inventory (approx. 1,11,280 units) sold in the first nine months of 2023
• NCR follows with approx. cumulative sales value of INR 50,188 Cr (approx. 49,475 units) sold in this period
• Bengaluru saw homes worth approx. INR 38,517 Cr (approx. 47,100 units) sold in 9M 2023
•  Hyderabad saw about 44,220 units worth approx. INR 35,802 Cr sold in the period
• Pune saw approx. 63,480 units worth approx. INR 39,945 sold till Sept. 2023, indicating a higher traction of budget housing in the city
• Chennai witnessed approx. 16,310 units worth approx. INR 11,374 sold in 9M 2023
• Kolkata saw the lowest overall value (approx. INR 9,025 crore) of housing inventory (17,280 units) sold in the period – again indicating higher sales of affordable homes

Anuj Puri, Chairman, of Anarock Group says, If we look at the quarter-on-quarter sales values in 2023, each quarter saw consistent growth, and overall sales value has already breached the INR 1 lakh crore mark.

In Q1 2023, homes worth INR 1,12,976 Cr were sold in the top 7 cities, Q2 2023 saw a jump of 1%, and then a further jump of 8% in Q3 2023. Sales in the ongoing festive quarter have been robust across these markets and the concluding quarter of 2023 will be no different. Thus, we expect the overall housing sales value to cross INR 4.5 lakh crore by 2023-end.”

Sales Value Growth: 9M 2023 vs 9M 2022

Source: ANAROCK Research

Comparing the first nine months of 2022 and 2023 shows a 44% jump in total sales values of homes sold – from approx. INR 2,43,027 Cr in 9M 2022 to approx. INR 3,48,776 Cr in 9M 2023.

• Pune recorded the highest yearly jump (96%) in total sales values – from approx. INR 20,406 Cr in 9M 2022 to approx. INR 39,945 Cr in 9M 2023.
• Chennai saw a 45% jump in the overall housing sales values in the period – from approx. INR 7,825 Cr in 9M 2022 to approx. INR 11,374 crore in 9M 2023.
• Hyderabad saw homes worth approx. INR 35,802 Cr sold in 9M 2023, against a sales value of approx. INR 25,001 Cr in same period in 2022. In a year, Hyderabad saw housing sales increase by 43%.
• Bengaluru saw a 42% jump in total sales value – from approx. INR 27,045 Cr in 9M 2022 to approx. INR 38,517 Cr in 9M 2023.
• MMR saw a yearly gain of 41%, with total sales value of approx. INR 1,63,924 Cr in 9M 2023 against approx. INR 1,16,242 Cr in 9M 2022.
• NCR saw its overall housing sales value clock in at approx. INR 50,188 Cr in 9M 2023, against approx. INR 38,895 Cr in 9M 2022 – an annual increase of 29%.
•  Kolkata , at 19% saw the lowest yearly jump in overall sales values in 9M 2023 against corresponding period in 2022. The overall value of homes sold in the city was approx. INR 9,025 Cr in 9M 2023, against INR 7,612 Cr in 9M 2022.

According to Anuj Puri, the fact that the housing sales value in 9M 2023 exceeded that of the whole of 2022, reflects the increased demand for premium luxury homes this year. This along with the fact that average prices in the top cities rose by anywhere between 8-18% this year, makes an apple-to-apple comparison of annual sales value challenging.