Housing sale in top 7 cities surges 36% to 1.2 lakh units in Q2: Anarock

While the monsoon season usually witnesses a slump in housing sales in the September quarter, the real estate sector saw the highest number of house sales, according to the latest data by Anarock. During the period under review, the housing sales in the top 7 cities stood at around 1,20,280 units, up 36% year-on-year (YoY) against 88,230 units in the same period last year.

Amongst the top 7 cities, Mumbai Metropolitan Region (MMR) recorded the highest sales of 38,500 units in September this year, up 46% YoY against 26,400 units in the same period last year. This was followed by Pune, which sold 22,885 units during the quarter under review, up 63% YoY against 14,080 units in the same period last year. "Cumulatively, the two western cities (Mumbai and Pune) accounted for 51% of total sales seen across the top 7 cities in Q3 2023," says Anuj Puri, chairman, Anarock Group.

During the quarter under review, Bengaluru sold 16,395 units, up 29%, against 12,690 units in the same period last year. Hyderabad, Kolkata, Chennai and NCR sold 15,865, 16,375 units, 5,320 units, 4,940 units and 15,865 units, respectively, in the June quarter this year.

Meanwhile, the top 7 cities also witnessed significant new supply, with over 1,16,220 units added in the quarter against 93,490 units in the corresponding period of 2022, which is a 24% annual supply increase.

"City-wise, Mumbai Metropolitan Region also topped in new supply with approx. 36,250 units added in Q3 2023 - a modest 1% annual growth," says Puri. "Hyderabad, on the other hand, saw a 60% yearly rise in supply with approx. 24,900 units added in this period."

In terms of budget segments, the mid-range segment (homes priced between ₹40–80 lakh) continued to dominate, with a 28% share of the total new supply in Q3 2023. The luxury segment (homes priced >₹1.5 crore) and premium segment (₹80 lakh – ₹1.5 crore) were close behind with a 27% share each.

Despite increased new supply, existing housing inventory saw a 3% yearly decline across the top 7 cities to around 6.10 lakh units during the quarter under review from around 6.30 lakh units by Q3 2022-end.

Average residential prices in the top 7 cities collectively saw a double-digit growth of 11% in Q3 2023 against Q3 2022. Hyderabad witnessed the highest yearly average residential price growth, accounting for 18% of the price hike, followed by Bengaluru with a 14% annual rise.

According to Anarock, the continued healthy sales momentum is at least partially attributable to the repo rate pause maintained by the RBI in the two recent monetary policies. This has kept home loan interest rates stable, keeping housing purchase sentiment high.

"Considering the overall present economic scenario, the momentum in housing sales and new launches across the top 7 cities is expected to continue in the October-December quarter. Many of the large and branded developers have a healthy pipeline of new project launches in the upcoming festive quarter across the top 7 cities. With homebuyer demand remaining firmly skewed towards projects by branded developers, these players may see record sales yet again," says Puri.