Homebuying Trends in 2023 Decoded: Know the Details

As the dust settles on the first half of the year, it could be prudently stated that the key residential markets across the country displayed remarkable resilience and growth during the period, notwithstanding the increase in home loan interest rates and the continuing global economic constraints. Let’s delve into the numbers and trends that have characterized this interesting period.

Remarkable growth in sales

In a testament to the strength of the market, a total of 80,250 residential units were sold across the key eight cities in the country in Q2 2023 alone. This propelled the cumulative sales tally for the first half of the year to an impressive 1,66,090 units.

Noteworthily, this figure showcases a growth rate of 15 percent when compared to the same period in 2022. The market’s ability to not only bounce back from the challenges posed by the pandemic but also be able to sustain its pace speaks volumes about the soundness of market fundamentals.

Mumbai and Pune lead the charts

Two cities that have consistently occupied the top positions on the list are Mumbai and Pune, contributing to the majority share of housing sales in the country. Together, they accounted for a whopping 61 percent share in the overall sales during Q2 2023. Their status as economic and cultural hubs seem to have translated seamlessly into a strong demand for residential real estate, cementing their positions as preferred destinations for property investments.

Under-construction properties steal a march

The distribution of residential units sold in recent times unveils an interesting pattern.

While ready-to-move-in units comprised 15 percent of the total residential sales in Q2 2023, a substantial 85 percent majority of units acquired by homebuyers were still under construction.

This highlights the diverse preferences and priorities of buyers in the current real estate landscape. Although ready-to-move-in properties offer convenient immediate occupancy, bypassing construction timeline uncertainties, the significant share of sales of under-construction units suggests a growing willingness among buyers to invest in properties that offer future value potential, even if it means waiting for the project’s completion.

Preferred budget ranges

Around 27 percent of the residential units sold in Q2 2023 were in the budget range of INR 45—75 lakh, depicting the significance of mid-segment housing dynamics. However, the ticket size of units priced more than INR 1 crore secured a sizable 25 percent share as well.

This juxtaposition of mid-segment and luxury segments showcases the market’s diversity and its ability to cater to a wide range of buyers with varying preferences and budgets. Developers are responding to this demand by simultaneously offering properties that cater to both segments.

As we take stock of these trends, it becomes evident that the growth registered in the first half of 2023 not only underscores the market’s ability to rebound from adversities but also highlights its innate adaptability to changing circumstances. The divide between ready-to-move-in and under-construction units is a testament to the industry’s balanced approach, catering to both immediate occupancy seekers and those looking forward to a future investment. Finally, the pricing distribution shines a spotlight on the market’s inclusivity, ensuring that properties are available across a wide spectrum of budgets.

The journey has been exciting so far, and the path ahead promises more positive developments. Whether you are a prospective homebuyer, a savvy investor, or simply an observer, these trends invite you to be a part of this dynamic landscape that continues to surprise and inspire.

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