In the dynamic landscape of India’s real estate sector, the third quarter of 2023 stands as a testament to resilience and growth. Across the top eight cities, a remarkable surge in both residential demand and supply has set the tone for a promising trajectory in the property market. With new launches surpassing the one-lakh mark for the sixth consecutive quarter and sales witnessing a robust 22 per cent increase, the sector demonstrates unwavering momentum.
A notable trend in Q3 2023 is the concentration of both demand and supply in higher price brackets, indicating a shift towards aspirational living and preference-driven purchases. However, amidst this surge, a significant portion of homebuyers, comprising 52 per cent, faces challenges in finding properties within their desired price range. This gap primarily stems from the scarcity of ready-to-move-in properties in the primary market, echoing the preferences of nearly 80 per cent of prospective buyers.
The heightened demand for ready-to-move-in properties, coupled with burgeoning investor interest and escalating input costs, has led developers to impose premiums, propelling prices upward. Despite this surge, the real estate sector continues to attract investors and end-users alike, emerging as a preferred asset class over traditional options like gold and stocks.
Looking ahead to the upcoming quarter, optimism pervades the market, fueled by the onset of the festive season. Historical data underscores the peak in consumer activity during festivities, with a substantial share of yearly sales occurring in the final quarter and the subsequent first quarter. With property demand already at 87 per cent of 2022 levels and the buoyant sentiments of homebuyers, the year is poised to conclude on a positive note.
New Supply – Key Insights:
- The third quarter witnessed a record high in new residential supply, with a year-on-year growth of 17 per cent, marking the highest surge in the last three quarters. This sustained momentum reflects developers' confidence, spurred by robust demand and the festive season.
- Mumbai, Pune, and Hyderabad emerge as frontrunners in new launches, collectively commanding a significant 63 per cent share. Micro market trends reveal specific areas, such as Dombivli in Mumbai and Kukatpally and Medchal in Hyderabad, witnessing maximum activity.
- Properties priced above INR 1 crore dominate the new supply landscape, followed by the INR 45-75 lakh bracket. Additionally, developers prioritize 3 BHK configurations, catering to evolving consumer preferences shaped by remote work dynamics.
- Projects now align with consumers' post-pandemic aspirations, emphasizing holistic amenities such as healthcare facilities, safety measures, and recreational spaces, reflecting a paradigm shift in consumer preferences.
