July 11, 2023: In the first six months of 2023 (H1 2023), 1,26,587 housing units were sold in India, marking the highest number of residential property sales in 15 years, according to a report by real estate consultancy JLL. This marked a rise of 21% YoY owing to a stable job environment and resilient domestic economy.
Bangalore and Mumbai were the biggest markets, with a combined share of 42% of the total H1 2023 sales. The highest number of residential sales were recorded in Bangalore at 26,625 units followed by 26,188 units in Mumbai and 25,201 units in Pune. Hyderabad recorded the highest growth of 69% YoY with the number of residential properties sold in H1 2023 increasing to 15,925 units from 9,449 units in H1 2022. The sales in Pune increased from 16,802 units in H1 2022 to 25,201 units in H1 2023, accounting for 20% of the total sales.
More than 62,000 units were sold in the first quarter of 2023 (Q1 2023) and 64,500 units in the second quarter of 2023 (Q2 2023), representing a significant 4% QoQ growth. In Q1 2023, an additional 14,000 units were sold in the plotted developments and villa categories in the top seven cities. Most of the sales activity was concentrated in the southern cities of Bangalore, Chennai and Hyderabad.
In H1 2023, the mid-segment properties, priced between Rs 50 lakh and Rs 75 lakh, dominated the sales with a 24% share. The share of premium-segment properties, priced more than Rs 1.5 crore, also grew from 18% in H1 2022 to around 21% in H1 2023, up by 37% YoY. The share of properties in the luxury segment increased from 14% in H1 2022 to 19% in H1 2023, marking the highest sales growth of around 67% YoY. The share of affordable apartments priced below Rs 50 lakh declined from 24% in H1 2022 to 19% in H1 2023.
In the first six months of 2023, the majority of the residential sales were driven by projects launched in the last 18-month period, the report said. Older inventory, which was launched before 2018 and is nearing completion, is also seeing traction. Around 12% of the sales in H1 2023 constituted projects that were launched before 2018.
With unsold inventory in quality projects declining and ready-to-move options remaining limited, completed projects contributed to only 13% of the half-yearly sales in 2023. As of Q2 2023, unsold inventory across the top seven cities of India increased by 2% on a QoQ basis, with new launches outpacing sales. Mumbai, Hyderabad and Bangalore together accounted for 63% of the unsold stock.
The report stated that residential prices in major cities rose in the range of 6-9% YoY, though Bangalore witnessed the highest increase of around 11-12% YoY. Kolkata, with improving buyer sentiment, has started seeing a positive movement in prices as well, albeit at a slower pace, with prices up by 2% YoY.
In H1 2023, 151,000 units of new residential launches were recorded, marking a rise of 24% YoY. The launches also increased on a quarterly basis, with over 76,000 units launched in Q2 2023. Mumbai witnessed the highest number of new launches with a share of 24%, followed by Pune at 22% and Hyderabad at 19%.
