In the third quarter of 2023, the Indian residential property market achieved remarkable success, with sales of 120,280 units across the top seven cities. This marked a significant 36 percent increase compared to the same period the previous year, as reported by Anarock Research.
Among these top seven cities, Mumbai led the way with the highest housing sales, totaling approximately 38,500 units, followed closely by Pune with approximately 22,880 units.
Anuj Puri, Chairman of ANAROCK Group, noted, "Cumulatively, the two western cities accounted for 51 percent of the total sales seen across the top 7 cities in Q3 2023." He also highlighted that in terms of growth, the Mumbai Metropolitan Region (MMR) saw a 46 percent annual rise in housing sales, while Pune saw a substantial 63 percent yearly increase.
Additionally, these top seven Indian cities experienced significant new supply, with over 116,220 units added during the quarter, reflecting a 24 percent annual supply increase compared to the corresponding period in 2022.
Puri further stated, "City-wise, MMR also led in new supply, adding approximately 36,250 units in Q3 2023, albeit with just a modest 1 percent annual growth. In contrast, Hyderabad saw a remarkable 60 percent yearly rise in supply, adding around 24,900 units during this period."
Regarding budget segments, the mid-range segment (homes priced between INR 4 million – 8 million or $48,128 – $96,256) continued to dominate with a 28 percent share of the total new supply in Q3 2023. The luxury segment (homes priced over INR 15 million) and premium segment (INR 8 million – 15 million) closely followed, each accounting for a 27 percent share of the market.
Average residential prices in the top seven cities collectively experienced a robust double-digit growth of 11 percent in Q3 2023 compared to the third quarter of the previous year. Hyderabad saw the most substantial annual increase in average residential prices at 18 percent, while Bengaluru followed closely with a 14 percent annual rise.
This ongoing healthy sales momentum can be attributed, at least in part, to the consistent repo rate pause maintained by India's central bank in its recent monetary policies. This stability in home loan interest rates has kept housing purchase sentiment high.
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