The real estate sector in India’s top eight housing markets is experiencing a robust upswing, showcasing a remarkable 22% surge in sales and a noteworthy 17% increase in new supply during the third quarter of 2023, as revealed by Real Estate Company, latest ‘Real Insight Residential – July-September 2023’ report.
Reveal the Numbers: Sales and Supply Highlights
In a significant development, the sales of residential units soared to 1,01,220 units during Q3, compared to the 83,220 units recorded in the same period the previous year. This positive trend underscores the resilience and growth potential of India’s real estate market.
City-wise Breakdown of Sales Performance
- Ahmedabad: A 31% Upswing
- Y-o-Y housing sales in Ahmedabad have experienced a substantial 31% increase, reaching 10,300 units from the previous 7,880 units.
- Bengaluru: Leading with 60% Growth
- Bengaluru takes the lead with an impressive 60% growth in sales, surging to 12,590 units from 7,890 units.
- Delhi-NCR: Notable 44% Increase
- The Delhi-NCR region recorded a substantial sales growth of 44%, reaching 7,800 units from 5,430 units.
- Hyderabad: A Strong 34% Surge
- Hyderabad witnessed a robust 34% growth in sales, reaching 14,190 units from 10,570 units.
- Kolkata: 43% Growth
- Kolkata experienced a remarkable 43% growth in sales, totaling 36,10 units from 2,530 units.
- Mumbai: Modest 5% Increase
- Mumbai’s sales saw a modest 5% increase, reaching 30,300 units from 28,800 units due to a higher base.
- Pune: 18% Growth
- Pune registered an 18% growth in sales, reaching 18,560 units from 15,700 units.
- Chennai: Decline by 12%
- Chennai is the only market witnessing a decline in sales, with unit sales dropping by 12% to 3,870 units from 4,420 units.
Factors Driving the Surge
Vikas Wadhawan, CFO, REA India, and business head of a Real Estate company, attributes this growth to factors such as pent-up demand, increased disposable income, stable interest rates, and renewed Investor confidence.
Shifting Trends: Consolidation and Confidence
Wadhawan notes that the market is consolidating, with demand centering around reputed developers. This trend instills newfound confidence in homebuyers, particularly for under-construction projects—a significant shift from previous years.
Market Dynamics: Ready-to-Move and Premium Segment
In the Q3 period, 14% of units sold were ready to move in, and 31% of sales occurred in the above Rs 1 crore price segment, indicating a diverse market catering to different preferences.
New Supply Landscape
Regarding new supply, Ahmedabad takes the lead with substantial growth, reaching 16,670 units. Overall, there’s a positive landscape with a 17% increase in launches across the eight markets, totaling 123,080 new units.
