The residential real estate sector is booming which can be inferred from the latest housing sales figures for the first quarter of this year. Recording an all time high quarterly sales, 1.14 lakh housing units were sold across top seven cities in Q1 2023, with a quarter of these in the high-ticket segment, priced more than Rs 1.5 crore.
Mumbai and Pune account for half of the sales, with the latter recording 48 percent jump in the March ended quarter this year, when compared with the same quarter of last year, reveals latest ANAROCK Research data.
Despite global economic headwinds, including layoffs by several large and small corporates, the bull run in the Indian housing market continued in the first quarter of the year. New launches have breached the one lakh mark growing 23 percent year on year, from 89,140 units in Q1 2022. At least half of the total new launches were recorded in these same two cities, while Hyderabad was the only one to witness a dip in new supply. Among other cities, Chennai added 6,410 units while 5,850 units and Bangalore added 13,560 units in this quarter.
Despite spiraling new launches in this and the previous quarter, the available inventory in the top seven cities remained almost similar at about 6.27 lakh units by Q1 2023-end. Compared with last quarter, unsold stock saw a 1 percent dip across the top 7 cities. Among the top cities, NCR saw highest decline in its unsold stock in Q1 2023 - by 22 percent.
Nearly one-third of the total new home supply was in the mid-segment priced Rs 40 to 80 lakh, followed by premium segment of Rs 80 lakh – Rs 1.5 crore with 24 percent share and affordable segments of less than Rs 40 lakh with 18 percent share.
Average residential property prices across the top 7 cities increased in the range of 6-9% in Q1 2023 when compared to Q1 2022, mainly due to increase in the prices of construction raw materials and overall rise in demand. Mumbai and Bangalore recorded the highest 9% annual jump.
Anuj Puri, Chairman – ANAROCK Group, says emerging headwinds could pose a challenge in the short-term. “Persistent inflation concerns along with another possible rate hike by the RBI in the near future could dent the housing market’s growth trajectory in the upcoming two quarters. Once the dust of the ongoing economic disruptions settles, it is likely to regain again backed by a rise in homeownership sentiment.”
Alongside, Pavitra Shankar, MD, Brigade Enterprises, in its interaction with CNBC-TV18 today said it believes that affordability will play a crucial role in seeing traction in metro markets going forward.
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