Despite the traditionally sluggish monsoon quarter, the Indian residential property market saw a remarkable surge in housing sales during the third quarter of 2023. According to a report by ANAROCK, a prominent Indian real estate consultancy, a total of 120,280 housing units were sold in the top seven cities across India. This figure represents an impressive 36 percent increase compared to the same period in 2022 when approximately 88,230 units were sold.
The report also highlights a significant increase in new housing supply in these top seven cities, including Mumbai Metropolitan Region (MMR), Pune, National Capital Region (NCR), Bengaluru, Hyderabad, Chennai, and Kolkata. In Q3 2023, the market witnessed the addition of over 116,220 housing units, marking a substantial 24 percent annual increase compared to the 93,490 units introduced during the corresponding period in 2022.
Budget Segment Dominance
Breaking down the market by budget segments, the mid-range category (homes priced between Rs 40–80 lakh) maintained its dominance, contributing to 28 percent of the total new housing supply in Q3 2023. Following closely behind were the luxury segment (homes priced above Rs 1.5 crore) and the premium segment (Rs 80 lakh – Rs 1.5 crore), each accounting for a 27 percent share.
Despite the influx of new housing supply, the existing housing inventory across the top seven cities saw a modest 3 percent annual decline. The inventory decreased from approximately 6.30 lakh units at the end of Q3 2022 to around 6.10 lakh units by the close of Q3 2023.
Price Growth and Regional Trends
The report highlighted that average residential prices in the top seven cities collectively experienced robust double-digit growth of 11 percent in Q3 2023 compared to Q3 2022. Among these cities, Hyderabad stood out with the highest yearly average residential price growth of 18 percent, followed closely by Bengaluru with a 14 percent annual increase.
The sustained momentum in housing sales can be attributed, at least in part, to the Reserve Bank of India’s (RBI) decision to maintain a pause on the repo rate in its recent monetary policies. This policy stance has kept home loan interest rates stable, thereby bolstering sentiment for home purchases.
MMR Leads in Sales and Supply
Among the top seven cities, Mumbai Metropolitan Region (MMR) secured the highest housing sales, recording approximately 38,500 units sold. Pune followed closely with approximately 22,880 units sold. Together, these two western cities accounted for 51 percent of the total sales in Q3 2023. Notably, MMR witnessed a substantial 46 percent annual increase in housing sales, while Pune experienced a remarkable 63 percent yearly surge.
In terms of new supply, MMR also took the lead with approximately 36,250 units added in Q3 2023, reflecting a modest 1 percent annual growth. On the other hand, Hyderabad observed a remarkable 60 percent yearly rise in supply, with approximately 24,900 units introduced during the same period.
These impressive figures signify a robust and resilient real estate market in India, defying seasonal expectations and showcasing healthy growth in sales and supply across various segments and cities.