India witnesses all-time surge in housing sales between July and Sept, up 36% from last year: Anarock

The Mumbai Metropolitan Region (MMR) emerged as the leader, accounting for the highest sales with approximately 38,500 units sold. Following closely behind was Pune, with nearly 22,885 units sold. Together, these western cities contributed to 51 percent of the total sales in Q3 2023. MMR saw a 46 percent annual rise in housing sales, while Pune witnessed a 63 percent yearly increase.

In terms of new property supply, the top seven cities recorded an increase of over 1.16 lakh units, marking a 24 percent annual growth. MMR again took the lead in this category, with around 36,250 units launched in Q3 2023, albeit with a modest 1 percent annual growth rate. Hyderabad, on the other hand, experienced a 60 percent yearly surge, adding approximately 24,900 units during the same period.

The market also witnessed an increased supply of luxury units, priced above INR 1.5 Crores, which accounted for 27 percent of the total share, the highest quarterly share in the last five years.

Despite the surge in new supply, the existing housing inventory across the top seven cities witnessed a 3 percent yearly decline, decreasing from approximately 6.30 lakh units in Q3 2022 to around 6.10 lakh units in Q3 2023.

Average residential prices in the top seven cities collectively saw an 11 percent growth in Q3 2023 compared to the same quarter in the previous year. Hyderabad led the pack with an 18 percent yearly growth, closely followed by Bengaluru with a 14 percent increase.

The continuous upward momentum in housing sales has been partially attributed by ANAROCK to the Reserve Bank of India's decision to maintain a stable repo rate in recent monetary policies, thereby keeping home loan interest rates stable and boosting housing purchase sentiment.

Anarock Chairman Anuj Puri said that the housing market's strong performance is expected to continue into the October-December quarter.

Puri noted that the continued healthy sales momentum is at least partially attributable to the repo rate pause maintained by the Reserve Bank of India in the two recent monetary policies.

"Many leading and renowned developers have a robust pipeline of new project launches across the top seven cities for the upcoming festive season, and with homebuyer demand remaining skewed toward projects by these established developers, record sales are anticipated," he said.

"The ever-rising aspiration of owning a home mainly driven by rising income levels has meant a strong demand for housing over the last couple of years. The trend is expected to continue in the foreseeable future," Gurugram-based realty firm Krisumi Corporation Managing Director Mohit Jain said.

The demand for luxury housing too is likely to remain strong amid the desire for upscale living experiences, he said.

"Keeping pace with the demand for luxury homes, the supply is also expected to remain strong," Jain said.