In the initial nine months of 2023, India's residential sector witnessed a remarkable surge, clocking 196,227 unit sales, equivalent to 91% of 2022's total, marking the highest figures since 2008 at nearly 260,000 units, as per JLL's report. This growth momentum is anticipated to carry into 2024, with sales projected between 290,000 to 300,000 units, driven by strong demand and quality launches.
Quarterly sales set records, averaging over 65,000 units until Q3 2023, reaching an unprecedented 223,905 units. This marks a 21.5% year-on-year surge. Anticipations suggest roughly 280,000 launches by 2023-end and a robust continuation in 2024, estimated at 280,000 to 290,000 units.
Dr. Samantak Das, Chief Economist at JLL India, remains optimistic despite rising home loan rates and prices. The market retains positivity, eyeing surpassing 260,000 units in residential sales and launching 280,000 units in 2023. A potential policy rate cut in 2024, contingent on GDP growth and inflation, could stimulate growth, with sales expected to range between 290,000 and 300,000 units in 2024.
From Jan to Sep 2023, 71% of residential sales were linked to projects launched between Jan 2022 and Sep 2023. Consumer interest is rising in under-construction projects due to developers' timely execution and delivery records.
In the premium segment, mid-segment prices (₹50 – 75 lakh) dominated 9-month 2023 sales, while the share of premium segments (above ₹1.50 crore) increased to at 22% from 18% in 9 months of 2022. Delhi NCR and Mumbai led in the premium segment sales. The luxury segment (priced above ₹3 crore) surged by 83% from 8,013 units in 9 months 2022 to 14,627 in 9 months 2023.
Looking to 2024, Siva Krishnan, Sr. MD, Chennai & Coimbatore, Head of Residential, India, envisions a robust residential market, especially in mid- and premium segments. The market's strength is expected to be sustained with a robust supply pipeline and launches by renowned developers, estimating a range of 280,000 to 290,000 units.
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