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

• 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 housing sales in Q3 2023
• Though the monsoon quarter usually sees slower market momentum, the top 7 cities recorded phenomenal housing sales & new launches
• 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

Mumbai, 28 September 2023: 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.

Total Housing Sales Q2 2023 in Top 7 Cities

“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 housing 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 housing 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.

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