Over 1.15 Lakh Units Sold in Top 7 Cities 

Housing sales in Q2 2023 supersede previous peak of Q1 2023; top 7 cities register 36% Y-o-Y rise in sales against 84,940 units sold in Q2 2022 & over 1% Q-o-Q growth

Despite spiralling home loan rates in recent past and global economic headwinds including layoffs by several large and small corporates, the bull run in the Indian housing market continued in the second quarter of the year. 

Quarterly housing sales are at an all-time high with approx.1,15,100 units sold in Q2 2023 across the top 7 cities, reveals latest ANAROCK Research data. This is a 36% yearly rise as against approx. 84,940 units sold back in Q2 2022.

MMR and Pune accounted for over 51% of the total sales in the top 7 cities, with Pune witnessing the highest 65% yearly jump. As many as 58,770 units were sold altogether in these cities.

Meanwhile, new launches across the top 7 cities once again breached the one lakh mark and witnessed 25% yearly rise – from 82,150 units in Q2 2022 to over 1,02,610 units in Q2 2023. Interestingly, MMR and Pune again saw the maximum new supply, accounting for 63% of the total new launches across the top 7 cities. Individually, the two cities saw 31% and 29% yearly increase in their new supply, respectively.

Anuj Puri, Chairman – ANAROCK Group, says ““The housing market is yet to feel the impact of the home loan rate hike early this year, and of the global economic headwinds. It continues to be on a roll with the momentum remaining strong even in the second quarter of 2023. Housing sales in the top 7 cities broke the previous high record of Q1 2023 and stood more than 1.15 lakh units in Q2 2023. Pune and MMR were the only two cities to see quarterly rise in housing sales – of 4% and 10% respectively while other cities saw some dip. But on yearly basis, most top 7 cities saw significant jump in housing sales.”

New Launch Overview

The top 7 cities recorded new launches of around 1,02,610 units in Q2 2023 against 82,150 units in Q2 2022, increasing by 25% over the previous year’s corresponding period. The key cities contributing to new launches in Q2 2023 included MMR (Mumbai Metropolitan Region), Hyderabad, Pune, and Bengaluru, together accounting for 84% supply addition.

• MMR saw approx. 43,390 units launched in Q2 2023 – increasing by 31% over Q2 2022. More than 61% new supply was added in the sub-INR 80 lakh budget segment.
• Pune added new supply of approx. 21,350 units in Q2 2023 compared to 16,560 units in Q2 2022 – an increase of 29%.  
• Hyderabad added approx. 10,470 units in Q2 2023, a yearly decline of 51% over the corresponding period last year. Over 43% new supply in Q2 2023 was added in the high-ticket price segment priced >INR 1.5 Cr.
• Bengaluru added approx. 11,440 units in Q2 2023, declining yearly by 9%. Approx. 68% new supply was added in the mid-range and premium segments combined, i.e., the INR 40 Lakh – INR 1.5 Cr. price bracket.
• NCR saw an increase of 52% in new launches against Q2 2022 with approx. 8,460 units launched in Q2 2023.
• Chennai added approx. 5,040 units in Q2 2023, a yearly increase of whopping 71% over Q2 2022.
• Kolkata added approx. 2,460 units in Q2 2023, an increase of 22% over Q2 2022. Approx. 76% new supply was added in the mid segment priced between INR 40 lakh – INR 80 Lakh.

Source: ANAROCK Research

Overall Sales Overview

Approx. 1,15,110 units were sold in Q2 2023 across the top 7 cities – an increase of 36% over Q2 2022. NCR, MMR, Bengaluru, Pune, and Hyderabad together accounted for 90% sales in the quarter.

• Pune witnessed housing sale of 20,680 units sold in Q2 2023, increasing by 65% over Q2 2022.
• NCR is the only city to see just a single digit yearly growth (of 7%) in housing sales among all cities – from 15,340 units in Q2 2022 to nearly 16,450 units in Q2 2023.
• Housing sales in Kolkata increased by 20% over Q2 2022, with approx. 5,780 units sold in Q2 2023.
• MMR and Bengaluru saw housing sales increase by 48% and 31% respectively in Q2 2023 against Q2 2022, with approx. 38,090 and 15,050 units sold, respectively.
• Chennai saw approx. 5,490 units sold in Q2 2023 – increasing by 44% against Q2 2022.
• Hyderabad recorded sales of approx. 13,570 units in Q2 2023, a spike of 21% over Q2 2022.

Source: ANAROCK Research

Price Movement

Average residential property prices across the top 7 cities increased in the range of 6-10% in Q2 2023 when compared to Q2 2022, mainly due to increase in the prices of construction raw materials and overall rise in demand. Hyderabad recorded the highest 10% annual jump and stands at INR 4,980 per sq. ft. as of Q2 2023-end.

Available Inventory

Amid robust sales, available inventory across the top 7 cities reduced by 2% on yearly basis to approx. 6.14 lakh units as of Q2 2023-end. NCR witnessed the highest yearly decline of 21% amid reduced new supply – from more than 1.41 lakh units as of Q2 2022 end to nearly 1.11 lakh units as of Q2 2023-end. This is a significant reduction in this realty hotspot.

Also Read: Mumbai’s real estate market a hotspot for foreign investors