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 approximate 1,20,280 units sold, against approx. 88,230 units in Q3 2022. This denotes a staggering 36% annual sales growth.
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 approximate 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.
The top 7 cities saw approximate 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 an approximate 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 approximate 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 an approximate 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 an approximate 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 approximate 9,250 units launched in Q3 2023. On a quarterly basis, the city saw a 9% rise compared to Q2 2023.
Chennai added an approximate 3,060 units in Q3 2023 – a quarterly decline of 39%, but a 28% annual increase Kolkata added an approximate 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.
An approximate 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 an approximate 15,865 units sold in Q3 2023, a marginal decline of 4% over the last quarter, but rising by 6% annually
Pune saw an approximate 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 an approximate 16,395 units sold in Q3 2023, a quarterly increase of 9%, and a 29% rise annually
Hyderabad recorded an approximate 16,375 units sold in Q3 2023, an increase of 21% over Q2 2023 and a 41% increase over Q3 2022.Kolkata saw an approximate 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 an approximate 4,940 units sold in Q3 2023, a decrease of 10% over Q2 2023 but a good 41% annual increase
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.
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%.
