Q3 2023 Housing Sales at All-time High – Over 1.20L Units Sold in Top 7 Cities, Up 36% Y-o-Y

• Though the monsoon quarter usually sees slower market momentum, the top 7 cities recorded phenomenal housing sales & new launches
• MMR accounted for the highest sales with approx. 38,500 units, followed by Pune with approx. 22,880 units; together, the western cities accounted for 51% of total sales in Q3 2023
• Robust new supply at over 1.16 lakh units across the top 7 cities – 24% annual growth
• MMR also tops new supply with approx. 36,250 units launched in Q3 2023, followed by Hyderabad with approx. 24,900 units
• New supply share of luxury units (priced >INR 1.5 Cr) at 27% – highest quarterly share in last 5 years; affordable housing supply share lowest at 18%
• Despite increased new supply, existing inventory across the top 7 cities declined 3% annually – from approx. 6.30 lakh units in Q3 2022 to approx. 6.10 lakh units in Q3 2023
• Avg. residential prices in top 7 cities saw 11% growth in Q3 2023 against Q3 2022; Hyderabad recorded highest 18% yearly growth, followed by Bengaluru with 14% rise

The Indian residential property segment remained unstoppable in Q3 2023, despite the usually slow monsoon quarter. Latest ANAROCK Research data shows that Q3 2023 saw housing sales across the top 7 cities create another new peak with approx. 1,20,280 units sold, against approx. 88,230 units in Q3 2022. This denotes a staggering 36% annual sales growth.

“Among the top 7 cities, MMR recorded the highest housing sales of approx. 38,500 units, followed by Pune with approx. 22,880 units,” says Anuj Puri, Chairman – ANAROCK Group. “Cumulatively, the two western cities accounted for 51% of total sales seen across the top 7 cities in Q3 2023. In terms of growth, MMR saw a 46% annual rise in housing sales, while Pune saw a massive 63% yearly jump.”

The top 7 cities also witnessed significant new supply with over 1,16,220 units added in the quarter, against 93,490 units in corresponding period of 2022 – a 24% annual supply increase.

“City-wise, MMR also topped in new supply with approx. 36,250 units added in Q3 2023 – a modest 1% annual growth,” says Puri. “Hyderabad, on the other hand, saw a 60% yearly rise in supply with approx. 24,900 units added in this period.”

In terms of budget segments, the mid-range segment (homes priced between INR 40–80 lakh) continued to dominate with a 28% share of the total new supply in Q3 2023. The luxury segment (homes priced >INR 1.5 Cr) and premium segment (INR 80 lakh – INR 1.5 Cr) were close behind with a 27% share each.

Despite increased new supply, existing housing inventory saw a 3% yearly decline across the top 7 cities – from approx. 6.30 lakh units by Q3 2022-end to approx. 6.10 lakh units as on Q3 2023-end.

Average residential prices in the top 7 cities collectively saw a double-digit growth of 11% in Q3 2023 against Q3 2022. At 18%, Hyderabad witnessed the highest yearly average residential price growth, followed by Bengaluru with a 14% annual rise.

The continued healthy sales momentum is at least partially attributable to the repo rate pause maintained by the RBI in the two recent monetary policies. This has kept home loan interest rates stable, keeping housing purchase sentiment high.

“Considering the overall present economic scenario, the momentum in housing sales and new launches across the top 7 cities is expected to continue in the October-December quarter,” predicts Puri. “Many of the large and branded developers have a healthy pipeline of new project launches in the upcoming festive quarter across the top 7 cities. With homebuyer demand remaining firmly skewed towards projects by branded developers, these players may see record sales yet again.”

New Supply Overview

The top 7 cities saw approx. 1,16,220 new units launched in Q3 2023, against 93,490 units in Q3 2022 – an increase of 24% over the previous year. On a quarterly basis, there was 13% jump. In Q2 2023, approx. 1,02,610 units were launched across the top 7 cities.

The key cities contributing to new supply in Q3 2023 were MMR (Mumbai Metropolitan Region), Hyderabad, Pune, and Bengaluru, which together accounted for 87% of the total additions.

• MMR saw approx. 36,250 units launched in Q3 2023 – a yearly increase of 1% but a 16% quarterly decline. Over 55% of the new supply in Q3 2023 was added in the INR 40 lakh to INR 2.5 Cr budget segment
• Hyderabad added approx. 24,900 units in Q3 2023 compared to 15,530 units in Q3 2022 – a yearly rise of 60%. On a quarterly basis, there was 138% increase in new launches in the city
• Pune added approx. 24,620 units in Q3 2023, thus witnessing highest yearly growth (of 67%) among all cities. The city saw a 15% quarterly rise in new supply. Over 71% of the new supply was added in the mid and upper mid-segment (INR 40 lakh – INR 1.5 Cr)
• Bengaluru added approx. 14,840 units in Q3 2023, a quarterly increase of 30% and a 7% annual jump. Approx. 87% of the new supply was added in the mid and upper mid-segment (INR 40 lakh – INR 1.5 Cr).
• NCR saw 45% annual increase in new launches, with approx. 9,250 units launched in Q3 2023. On a quarterly basis, the city saw a 9% rise compared to Q2 2023.
• Chennai added approx. 3,060 units in Q3 2023 – a quarterly decline of 39%, but a 28% annual increase
• Kolkata added approx. 3,300 units in Q3 2023, increasing by 34% over the previous quarter Q2 2023, but a 27% annual decline. Approx. 66% of the new supply was added in sub-INR 80 lakh budget segment.

Source: ANAROCK Research

Housing Sales Overview

Approx. 1,20,280 units were sold in Q3 2023 – yearly increase of 36% and a quarterly jump of 5%.  NCR, MMR, Bengaluru, Pune, and Hyderabad together accounted for 91% of the sales in the quarter.

• MMR recorded the highest sales among the top 7 cities in Q3 2023, with approx. 38,500 units sold – a marginal quarterly increase of 1%, but a 46% yearly rise
• NCR saw approx. 15,865 units sold in Q3 2023, a marginal decline of 4% over the last quarter, but rising by 6% annually
• Pune saw approx. 22,885 units sold in Q3 2023, an increase of 11% over Q2 2023 and a whopping 63% annual increase over Q3 2022
• Bengaluru saw approx. 16,395 units sold in Q3 2023, a quarterly increase of 9%, and a 29% rise annually
• Hyderabad recorded approx. 16,375 units sold in Q3 2023, an increase of 21% over Q2 2023 and a 41% increase over Q3 2022
• Kolkata saw approx. 5,320 units sold in Q3 2023, declining by 8% over the previous quarter but a 7% increase over the corresponding quarter in 2022
• Chennai saw approx. 4,940 units sold in Q3 2023, a decrease of 10% over Q2 2023 but a good 41% annual increase

Source: ANAROCK Research

Available Inventory

Despite robust new supply in the quarter, available inventory across the top 7 cities collectively declined by 1% on a quarterly basis and stands at approx. 6,10,200 units as on Q3 2023-end. On an annual basis, available inventory declined by 3% in Q3 2023 across the top 7 cities.

Price Movements

In the wake of rising input costs and the significant sales growth, average residential property prices across the top 7 cities collectively registered double-digit yearly growth of 11% – from INR 6,105 per sq. ft. in Q3 2022 to around INR 6,800 per sq. ft. in Q3 2023. Among the top 7 cities, Hyderabad saw the highest (18%) jump in average prices. On a quarterly basis, average prices in the top 7 cities jumped up by 5%.