The bull run in the Indian housing market continued in the first quarter of the year. Quarterly housing sales are at an all-time decadal high with approx. 1,30,170 units sold in Q1 2024 across the top 7 cities, reveals latest ANAROCK data. This is a 14% yearly rise against approx. 1,13,775 units sold back in Q1 2023.

Anuj Puri, Chairman – ANAROCK Group, says “MMR and Pune accounted for over 51% of the total sales in the top 7 cities, with MMR recording a 24% yearly jump and Pune witnessing an over 15% yearly rise. New launches across the top 7 cities continued above the one lakh mark but witnessed a mere 1% yearly rise – from 1,09,570 units in Q1 2023 to over 1,10,865 units in Q1 2024.”

“Notably, MMR and Hyderabad saw the maximum new supply, accounting for 51% of the total new launches across the top 7 cities,” says Puri. “Hyderabad saw a 57% yearly increase in new supply in Q1 2024, while MMR saw its new supply decline by 9% in the period. The quarter has recorded the highest ever sales in the last decade amid a significant rise in demand for high-ticket priced homes priced INR 1.5 Cr and above.”

Despite new launches remaining above the 1 lakh mark in this quarter, available inventory in the top 7 cities dropped by 7% annually – from approx. 6,26,750 units by Q1 2023-end to approx. 5,80,890 units by Q1 2024-end. Among the top cities, NCR saw highest decline of 27% in its unsold stock in Q1 2024. NCR’s unsold stock is currently lower than in other prominent cities like MMR, Pune, and Hyderabad.

India’s overall economic scenario remains positive, with the country’s GDP growth rate pegged as the highest globally, and inflation also seems to be under control. This outlook supports enduring homebuyer sentiment.

New Launch Overview

The top 7 cities recorded new launches of around 1,10,865 units in Q1 2024 against 1,09,570 units in Q1 2023, increasing by just 1% over the previous year’s corresponding period. The key cities contributing to new launches in Q1 2024 were MMR (Mumbai Metropolitan Region), Hyderabad, Pune, and Bengaluru, which together accounted for 83% of the quarter’s supply addition.

• MMR saw approx. 33,800 units launched in Q1 2024 – a decline of approx. 9% over Q1 2023. More than 59% of the new supply was added in the sub-INR 80 lakh budget segment.
• Hyderabad added approx. 22,960 units in Q1 2024 – a yearly jump of 57% over the corresponding period last year. Over 33% of the new supply was added in the high-ticket >INR 1.5 Cr) price segment.
• Pune added approx. 18,770 new units in Q1 2024 compared to 19,420 units in Q1 2023 – a decrease of 3%. 
• Bengaluru added approx. 16,485 units in Q1 2024 – a yearly increase of 22%. Approx. 66% of the new supply was in the mid-range and premium segments (INR 40 lakh – INR 1.5 Cr.)
• NCR saw new supply dip by over 42% against Q1 2023, with approx. 7,270 units launched in Q1 2024 against 12,450 units in Q1 2023. Notably, 55% of the new supply was added in the ultra-luxury segment (homes priced >INR 2.5 Cr.)
• Chennai added approx. 7,290 units in Q1 2024, a yearly increase of 14% over Q1 2023. At least 87% of the new supply was in the mid and premium segments (priced within INR 40 lakh to INR 1.5 Cr)
• Kolkata added approx. 4,290 units in Q1 2024, a decline of 27% over Q1 2023. Approx. 90% of the new supply was in the affordable and mid segments (priced up to INR 80 lakh.)

Source: ANAROCK Research

Overall Sales Overview

Approx. 1,30,170 units were sold in Q1 2024 – an increase of 14% over Q1 2023. NCR, MMR, Bengaluru, Pune, and Hyderabad together accounted for 91% sales in the quarter.

• MMR saw the highest housing sales of approx. 42,920 units in Q1 2024, increasing by 24% over Q1 2023. Approx. 34,690 units were sold in Q1 2023
• Pune saw approx. 22,990 units sold in Q1 2024, increasing by 15% over Q1 2023 when approx. 19,920 units were sold
• Hyderabad recorded the sale of approx. 19,660 units in Q1 2024, a 38% increase over Q1 2023 when approx. 14,280 units were sold
• NCR saw a 9% decline in housing sales – from approx. 17,160 units in Q1 2023 to approx. 15,650 units in Q1 2024.
• Kolkata also saw a decline of 9% in housing sales in the period – from approx. 6,185 units in Q1 2023 to approx. 5,650 units in Q1 2024.
• Bengaluru saw housing sales increase by 14% in Q1 2024 against Q1 2023, with approx. 17,790 units sold in Q1 2024 and approx. 15,660 units sold back in same period last year
• Chennai saw approx. 5,510 units sold in Q1 2024 – a decline of 6% over Q1 2023, at least partially attributable to factors like introduction of Tamil Nadu government’s three-tier guideline values for apartment complexes in late 2023, and high stamp duty and registration charges.

Price Movement

Average residential property prices across the top 7 cities have seen significant jump in the last one year – ranging between 10-32% in Q1 2024 when compared to Q1 2023, mainly due to increase in the prices of construction raw materials and overall rise in demand. Hyderabad and Bengaluru recorded the highest annual price jump of over 32% and 25%, respectively.

Available Inventory

Despite massive new supply added to the top 7 cities in Q1 2024, overall available inventory declined by 7% in Q1 2024 when compared to Q1 2023. The total available inventory in the top 7 cities as of Q1 2024-end stands at approx. 5.81 lakh units. At 27%, NCR witnessed the highest reduction in available inventory in Q1 2024 when compared to Q1 2023.

Also Read: Housing prices surged ~20% from 2021 to 2023

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• Approx. 3,64,900 units sold in 2022 against 2,36,500 units in 2021 across the top 7 cities, rising by 54% yearly; last peak was seen in 2014 when 3.43 lakh units were sold
• MMR records highest sales of approx. 1,09,700 units in 2022, followed by NCR with approx. 63,700 units
• Nearly 3,57,600 new units launched in 2022 against 2,36,700 units in 2021, rising by 51% y-o-y; total new launches in 2022 remain lower than previous peak of 2014 when >5.45 lakh units were launched in top 7 cities
• MMR & Hyderabad witness maximum new launches in 2022, together accounting for nearly 54% of total new launches in the year
• 35% of total new supply was in price bracket of INR 40 – 80 lakh, 28% in INR 80 lakh – INR 1.5 Cr budget & 17% in the ticket price of > INR 1.5 Cr
• NCR restricts new supply in 2022 to approx. 22,350 units despite robust housing sales of 63,700 units
• Available inventory decreased by mere 1% in 2022 over 2021 due to robust new housing supply during the year
• Residential prices across the top 7 cities rise between 4-7% annually

 Despite the gradual hike in property prices and home loan interest rates in 2022, it has been a fantastic year for residential real estate. Latest ANAROCK Research indicates that housing sales in the top 7 cities have created a new peak in 2022, breaching the previous high of 2014. Approx. 3,64,900 units were sold in 2022 against 2,36,500 units in 2021 across the top 7 cities – rising by 54% on Y-o-Y. The last peak was seen in 2014 when 3.43 lakh units were sold across the top 7 cities.

In terms of cities, MMR witnessed the highest sales of approx. 1,09,700 units in 2022, followed by NCR with approx. 63,700 units. The two realty hotspots are together once again the leading residential markets.

Meanwhile, new launches across the top 7 cities saw 51% annual rise – from 2,36,700 units in 2021 to nearly 3,57,600 new units in 2022. MMR and Hyderabad witnessed maximum new launches in 2022, together comprising nearly 54% share of the total new launches in the year.

Anuj Puri, Chairman – ANAROCK Group, says, “2022 has been a phenomenal year for residential real estate despite all headwinds including rising property prices, interest rate hikes and all geopolitical tensions etc. Housing sales in top 7 cities breached the previous highs of 2014 while new launches in comparison remained restricted.”

“While it was widely anticipated that the rise in property costs and interest rates towards the second half of 2022 would have a cascading impact on the residential sales, Q4 2022 remained quite robust with as many as 92,160 units sold in the period,” says Puri. “Interestingly, NCR became the shining star in 2022 which deliberately restricted new supply in the year to approx. 22,350 units but witnessed robust housing sales of 63,700 units.”

“Further, as we march into a new year, we anticipate the current sales momentum in the housing sector to continue in the first quarter of 2023. The appetite for homeownership has remained undeterred, with maximum sales being driven by the end-users. However, various risks loom large around the residential segment. A lot will depend on how the home loan interest rates pan out over the next year.”

Puri goes on to state that in 2023, we may see new launches to remain well under control across most top cities. Ready-to-move-in will continue to top buyer demand but the demand for new launches will also gain momentum. This is largely because the new supply in the market is and will continue to be dominated by the large and listed developers in the new year. There is a sense of confidence among the buyers for these developers and hence they will continue to perform well and see significant sales, just as they did in 2022.

Housing Sales Overview City-wise

Residential sales stood at approx. 3,64,900 units in 2022 against 2,36,500 units in 2021 across the top 7 cities – rising yearly by 54%. NCR, MMR, Bengaluru, Pune, and Hyderabad together accounted for 90% of the sales in the quarter.

• MMR recorded the highest sales in 2022 across the top 7 cities. With nearly 1,09,800 units sold in 2022, the city witnessed an annual increase of 44%.
• NCR recorded sales of approx. 63,800 units in 2022, a significant increase of 59% over the last year.
• Pune recorded sales of around 57,200 units in 2022, an increase of 59% over 2021.
• Approx. 49,500 units were sold in Bengaluru in 2022, an annual increase of 50%.
• Hyderabad recorded sales of approx. 47,500 units in 2022, a massive yearly increase of 87% over 2021.
• Kolkata recorded sales of approx. 21,200 units in 2022, an annual increase of 62% from the previous year.
• Approx. 16,100 units were sold in Chennai in 2022, a yearly jump of 29% over 2021.

New Launches Overview City-wise

The top 7 cities recorded new launches of around 3,57,600 units in 2022 as opposed to 2,36,700 units in 2021, an annual increase of 51% over the previous year.Key cities contributing to 2022 new unit launches included MMR, Hyderabad, Pune, and Bengaluru, altogether accounting for 86% of the total addition.

• MMR witnessed the highest new units launches of 1,24,650 units in 2022 among the top 7 cities. Over 68% of the new supply was added in INR 40 Lakh to INR 2.5 Cr budget segment.
• Hyderabad added a new supply of approx. 68,000 units in 2022 compared to 51,500 units in 2021 – a healthy increase of 32%.
• Pune added approx. 64,300 units in 2022, a significant annual increase of 61% over the previous year. Over 74% of the new supply was added in the INR 40 Lakh – INR 1.5 Cr budget segment.
• Bengaluru added approx. 49,200 units in 2022, a yearly increase of 61%. Approx. 72% new supply was added in the INR 40 Lakh – INR 1.5 Cr budget segment.
• NCR’s new launches in 2022 recorded a decrease of 20% from the previous year with approx. 25,350 units launched in this year.
• Chennai added approx. 10,000 units in 2022, an annual decrease of 19% over the previous year.
• Kolkata added approx. 16,100 units in 2022, an annual increase of 17% over 2021. Approx. 72% new supply was added in sub-INR 80 Lakh budget segment.

Price Movements

On annual basis, prices have risen in the range of 4 – 7% primarily due to an increase in the input costs and demand comeback post-COVID.

Available inventory as of Q4 2022-end

On annual basis, available inventory declined by 1% in Q4 2022 across the top 7 cities despite strong new housing supply in the current year 2022. As many as 6,30,953 units are available for sale across the top 7 cities in India.

Also Read: Godrej Properties to develop a Residential Group Housing project in Gurugram

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