In a testament to the resilience of India’s housing market, recent data from PropTiger.com has revealed remarkable growth in both residential unit sales and new housing supply across eight major cities during the first half of 2023. The report indicates a 15 percent year-on-year (YoY) surge in sales, while the introduction of new housing supply witnessed an impressive 44 percent YoY growth during the same period.
According to the “Real Insight Residential – April-June 2023” report, a quarterly analysis of India’s top eight residential markets supported by REA Group and produced by PropTiger.com, a total of 166,088 residential units were sold in these cities in H1 2023. This represents a substantial 15 percent increase compared to the 163,990 units sold in the corresponding period of the previous year. The findings underline the housing market’s capacity to withstand challenges and adapt to changing demands.
The eight cities covered in the analysis include Ahmedabad, Bangalore, Chennai, Hyderabad, Kolkata, Mumbai Metropolitan Region, Delhi-National Capital Region, and Pune. Of these, Mumbai and Pune emerged as the frontrunners, collectively commanding a significant 60 percent share of the overall sales during the first half of 2023.
On the supply front, the report highlights a commendable surge in new residential offerings. Realty developers introduced a noteworthy 261,570 units in the first half of 2023, marking a substantial 44 percent increase from the 249,850 units launched in the same period of 2022. Mumbai led the pack in terms of new supply, followed closely by Pune and Ahmedabad, showcasing these cities' role in catering to the escalating demand.
Interestingly, during the first half of 2023, 15 percent of the residential units sold were categorized as "ready-to-move-in," signifying the preference for immediate habitation among homebuyers. In contrast, the majority of transactions—85 percent—involved units in various stages of construction, reflecting the ongoing evolution of the real estate landscape.
In terms of ticket-size, the market exhibited a diverse buying sentiment. A substantial 27 percent of sales occurred within the INR 45-75 lakh price range, while a noteworthy 25 percent of overall sales were registered in the price bracket exceeding INR 1 crore, highlighting the market's inclusivity for varying budgets and preferences.
The report further revealed insights into new residential supply where the majority of units launched in H1 2023, constituting a commanding 33 percent, fell within the INR 45-75 lakh price bracket, indicating a strong demand in this range. Impressively, units priced at over INR 1 crore constituted nearly 29 percent of the total new supply, reaffirming the market's ability to cater to a diverse range of buyers.
In summary, the insights gleaned from PropTiger.com's comprehensive report offer a panoramic view of India's dynamic housing market during the first half of 2023. With remarkable growth in sales and new housing supply, it's clear that the market remains resilient and adaptable, catering to a diverse array of buyers and preferences across various price segments.
Renuka Kulkarni, a seasoned real estate professional, brings over five years of diverse experience in research, consulting, and architectural design within the urban sector. Her expertise spans public and private projects, showcasing proficiency in real estate research, trend interpretation, and policy analysis. With qualifications in architecture and a master’s degree in Data Science (Business Intelligence & Data Analytics) from IIIT Bengaluru, along with an M. Tech in Urban Development and Management from TERI School of Advanced Studies, New Delhi, Renuka seamlessly blends data analytics with market insights, offering a holistic understanding of the industry in her research pieces.
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