In the year 2023, India’s residential sector continued to break new records and is expected to register highest sales since 2008 at around ~260,000 units. The growth momentum currently seen is expected to be carried forward in 2024 as well according to JLL’s recent report titled ‘2023: A Year in Review’.
The residential market is experiencing a strong demand and ample supply, indicating its resurgence and continued growth this year. Residential sales in first nine months of 2023 reached 196,227 units, which is 91% of the total sales in 2022. It is interesting to note that residential sales broke all records with average quarterly sales of over 65,000 units till the third quarter of 2023. In 2024, we expect residential sales to be around 290,000 to 300,000 units on the back of robust demand and quality launches.
In 9M 2023, there was a significant increase in launches, reaching a record of 223,905 units, showing a healthy year-on-year growth of 21.5%. It is anticipated that by the end of 2023, we can expect around 280,000 launches. Furthermore, the robust supply pipeline from reputable developers indicates that the launches will continue to be strong in 2024, with an estimated range of 280,000-290,000 units.
It is pertinent to note that during Jan to Sep 2023, 71% of the residential sales (~138,925 units out of total sales of 196,227) were recorded in projects that were launched during Jan 2022 to Sep 2023. Attracted by quality products launched by developers, the risk appetite for consumers is increasing for under-construction projects since these projects are getting executed and delivered within stipulated timelines.
Mid segment price category (INR 50 – 75 lac) has dominated 9M 2023 sales like 9M 2022. However, share of premium segment (above INR 1.50 crore) has increased from 18% in 9M 2022 to 22% in 9M 2023. Delhi NCR and Mumbai have recorded maximum sales in first nine months of 2023 in the premium segment.
Luxury segment (priced above INR 3 crore) sales went up by 83% from 8,013 units in 9M 2022 to 14,627 in 9M 2023. With homebuyers upgrading to bigger sized homes, developers are launching such projects taking cognizance of this demand trend.