Despite the traditionally slow monsoon quarter, the Indian residential property market demonstrated remarkable resilience in Q3 2023. According to ANAROCK Research data, housing sales in the top 7 cities reached a historic high, with approximately 1,20,280 units sold during this period. This marked a substantial 36% year-on-year increase from around 88,230 units in Q3 2022.
City-wise Highlights
- MMR Leads Sales: Among the top 7 cities, Mumbai Metropolitan Region (MMR) recorded the highest housing sales with approximately 38,500 units, followed closely by Pune with about 22,880 units. Collectively, these two western cities accounted for 51% of total sales in Q3 2023.
- Supply Surge: The top 7 cities also witnessed a substantial increase in new housing supply, with over 1,16,220 units added in the quarter, marking a 24% annual supply growth. MMR topped in new supply with approximately 36,250 units added, while Hyderabad saw an impressive 60% yearly rise.
Segment-wise Trends
- Budget Segments: The mid-range segment (homes priced between INR 40–80 lakh) continued to dominate, comprising 28% of the total new supply in Q3 2023. The luxury and premium segments closely followed, each accounting for 27% of the new supply.
- Inventory Decline: Despite increased new supply, existing housing inventory saw a 3% yearly decline across the top 7 cities, falling from approximately 6.30 lakh units in Q3 2022 to around 6.10 lakh units in Q3 2023.
Price Growth and Factors
- Price Surge: Average residential prices collectively grew by 11% in Q3 2023 compared to Q3 2022. Hyderabad witnessed the highest yearly average residential price growth at 18%, followed by Bengaluru with a 14% annual rise.
- Stable Interest Rates: The consistent momentum in housing sales is attributed in part to the stable repo rate maintained by the Reserve Bank of India, which has kept home loan interest rates steady, supporting strong housing purchase sentiment.
Future Outlook
ANAROCK Research predicts continued momentum in housing sales and new launches during the October-December quarter, driven by branded developers’ healthy pipeline of new projects across the top 7 cities. This trend reflects the ongoing preference for projects offered by well-established developers. In Q3 2023, the top 7 cities witnessed approximately 1,16,220 new units launched, indicating a 24% increase over the previous year. Major cities contributing to new supply include MMR, Hyderabad, Pune, and Bengaluru, which collectively accounted for 87% of the total additions.
