Bengaluru Leads The Way As Q1 2023 Sees Robust Growth In Indian Housing Market

Tue, 04/11/2023 - 04:03

Author: Times Property


Indian Real Estate Market Sees Significant Growth In Q1 2023

According to a report by JLL India, sales of apartments in January-March across seven major cities in India have increased by 20% to 62,040 units, marking the highest quarterly sales in the last 15 years. 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 Bengaluru, Mumbai, and Pune, with Bengaluru leading the market with a 21% share.

The premium segment of apartments priced above Rs 1.5 crore had a 22% share in overall sales, reflecting rising demand for bigger homes with good amenities and support infrastructure.

75,000 Residential Units Launched In Q1 2023

The report also showed that there was an increase in new launches, with developers taking advantage of robust sales, thanks to the resilience seen in the Indian economy. In the first quarter of 2023, 75,000 residential units were launched, the highest number in over a decade and close to the previous high of 82,757 units in 2012. Most of the new launches were in the premium segment, which includes apartments priced above Rs 1.50 crore, accounting for 27% of all launches.

However, the rise in prices is seen across the spectrum of projects that have high demand and less ready-to-move inventory. Even new phases of existing housing projects are being launched at higher prices, making it harder for people to afford homes. The share of affordable apartments priced below Rs 50 lakh in quarterly sales decreased from 22% in Q1 of 2022 to 18% in Q1 of 2023.

An assessment of years to sell (YTS) shows that the expected time to liquidate the stock has declined from 2.9 years in Q4 of 2022 to 2.7 years in Q1 of 2022, indicating robust sales growth.

Luxury Housing Demand Rises

“In Q1 of 2023, the residential sector in India experienced significant growth and became a prominent contributor to the country's economy. The recovery trend since last year has brought about a remarkable revival in the market, with quarterly sales exceeding all historical peaks and continuing to grow. This growth has been fuelled by a collective effort of all stakeholders, who swiftly adapted to changing consumer preferences. As branded developers stepped up their game and delivered supply, both residential sales and launches reached unprecedented levels. The sales of over 62,000 units in the first quarter of this year signify a new era in the evolution of the residential market, with new benchmarks being set,” said Siva Krishnan, Head – Residential Services, India, JLL.

“Despite a 250 basis-point increase in the repo rate by the RBI since May 2022, the residential sector has shown strong growth in the first quarter of 2023. Sales figures indicate that the affordable, mid, and premium segments are all performing well. Delhi NCR and Mumbai have seen the maximum sales for apartments priced over Rs 1.5 crore and have also had significant launches in the premium segment. This has led to record sales for some new launches by renowned developers,” said Samantak Das, Chief Economist, and Head Research & REIS, India, JLL.

Source: Times Property