New Delhi, NFAPost: The Indian real estate market is experiencing a surge in housing sales, with a 7 per cent increase in the first quarter of 2023 in the top 14 cities, says a report from data and analytics firm PropEquity.
This growth in the Indian residential market in Q1 2023 was driven by several factors, including infrastructure growth, government policies and robust launches.
The top three cities in terms of quarterly sales were Pune, Thane and Hyderabad, with Pune leading the market with 25,536 units sold in Q1 CY’23 having a market share of around 21% of the total absorption witnessed in the top 14 cities.
According to the report, there has been a decline in the number of new residential units launched in India. This trend has been observed since the onset of the COVID-19 pandemic in 2020, and it is believed to be due to the clearance of earlier stock.
In the first quarter of 2023, there was an 18% decrease in the number of new launches, with 93,600 residential units compared to 113,491 units launched in the first quarter of 2022. The decrease in new launches may have been influenced by various factors, such as the current market conditions, supply chain disruptions and delays in construction activities.
PropEquity Founder and Managing Director Samir Jasuja said the residential market in India saw significant growth Q1 2023, and it started to play a big role in the economy of the nation.
“Market resurrection has been brought about by the recovery trend since last year, with quarterly sales surpassing the new launches in this quarter by 32%. All parties worked together to fuel this growth and quickly adjusted to shifting customer demands,” said PropEquity Founder and Managing Director Samir Jasuja.
He also highlighted that residential sales and launches reached record highs as branded developers upped their game and provided supplies.
“With nearly 1,23,938 units sold in the first quarter of this year, the residential market has entered a new stage of development and new standards have been set. The housing market’s growth trajectory in the ensuing two quarters may be dampened by persistent inflation worries and a potential RBI rate hike in the near future,” said PropEquity Founder and Managing Director Samir Jasuja.
Ambience Group chief business officer Ankush Kaul said the first quarter of 2023 definitely brings cheer to the residential real estate market.
“Home sales across all the top cities of India have registered double-digit growth. We see sales reaching an all-time high with a whopping 170 percent YoY growth in Gurugram. This is particularly noteworthy considering the challenging global environment and the hardening of interest rates on home loans in the domestic market,” said Ambience Group chief business officer Ankush Kaul.
Ambience Group chief business officer Ankush Kaul said though this is a welcome move, the April MPC has paused the rate hike. “Given the macroeconomic headwinds, we expect demand to move in close ranges,” he added.
With spiraling new launches and housing sales in this and the previous quarter, the available inventory in the top 14 cities is at about 5,17,879 units by March 2023 end. On a year-on-year (Y-o-Y) basis, unsold stock saw a 14 per cent dip across the cities, which indicates the sales are surpassing the current new launches which is beneficial for the market.
Despite the ongoing geopolitical tensions in the global arena, the Indian real estate sector has remained relatively unaffected during the first quarter of 2023. India has managed to weather the storm better than most other countries due to its stable economic policies, sound governance, and investor-friendly reforms.
The real estate market has shown resilience and continued growth, especially in the affordable housing segment, driven by increased demand from middle-class and first-time homebuyers. This positive trend is expected to continue, buoyed by the government’s initiatives to boost infrastructure development and ease of doing business.
In contrast to India, many developed and emerging economies have seen a significant downturn in their real estate markets during the first quarter of 2023. Countries such as the United States, the United Kingdom, and Australia have seen a decline in home sales due to uncertainties caused by the COVID-19 pandemic.
Similarly, emerging economies such as Brazil and South Africa have been hit by political and economic instability, leading to a decrease in investor confidence and a slowdown in the real estate sector. In comparison, India’s real estate market has proven to be relatively stable and attractive to investors, making it a bright spot in an otherwise gloomy global scenario.
About PropEquity
P.E. Analytics owns and operates PropEquity which is India’s largest online real estate data and analytics platform covering over 1,50,000+ projects of 45,000+ developers across over 44 cities in India with more than 16 years of cataloged data. We add approximately 300 projects every month. It is a premium Business Intelligence product- a first of its kind in India in the Realty space.
