Mumbai, 27 March 2023: Despite global economic headwinds, including layoffs by several large and small corporates, the bull run in the Indian housing market continued in the first quarter of the year. Quarterly housing sales are at an all-time high in the last decade, with approx. 1,13,770 units sold in Q1 2023 across the top 7 cities, reveals latest ANAROCK Research data. This is a 14% yearly rise against approx. 99,550 units sold back in Q1 2022.
The two leading western markets MMR and Pune accounted for over 48% of the total sales in the top 7 cities, with Pune witnessing an over 42% yearly jump.
New launches across the top 7 cities also breached the one lakh mark and witnessed a 23% yearly rise – from 89,140 units in Q1 2022 to over 1,09,570 units in Q1 2023. Interestingly, MMR and Pune again saw the maximum new supply, accounting for 52% of the total new launches across the top 7 cities. Individually, the two cities saw 58% and 34% yearly increases in their new supply, respectively.
Despite spiralling new launches in this and the previous quarter, the available inventory in the top 7 cities remained almost similar at about 6.27 lakh units by Q1 2023-end. On a q-o-q basis, unsold stock saw a 1% dip across the top 7 cities. Among the top cities, NCR saw the highest decline in its unsold stock in Q1 2023 – by 22%.
Anuj Puri, Chairman of ANAROCK Group, says, “The residential market’s winning streak continued in the first quarter of 2023 with housing sales in top cities breaching the previous high of Q1 2022. The quarter has recorded the highest ever sales in the last decade amid a significant rise in demand for high-ticket priced homes (>INR 1.5 Cr).”
“However, emerging headwinds could pose a challenge in the short-term,” says Puri. “Persistent inflation concerns along with another possible rate hike by the RBI in the near future could dent the housing market’s growth trajectory in the upcoming two quarters. Once the dust of the ongoing economic disruptions settles, it is likely to regain again, backed by rise in homeownership sentiment.”
New Launch Overview
The top 7 cities recorded new launches of around 1,09,570 units in Q1 2023 against 89,140 units in Q1 2022, increasing by 23% over the previous year’s corresponding period. The key cities contributing to new launches in Q1 2023 included MMR (Mumbai Metropolitan Region), Hyderabad, Pune, and Bengaluru, together accounting for 77% supply addition.
- MMR saw approx. 37,260 units launched in Q1 2023 – a significant increase of nearly 58% over Q1 2022. More than 62% of new supply was added in the sub-INR 80 lakh budget segment.
- Pune added a new supply of approx. 19,420 units in Q1 2023 compared to 14,490 units in Q1 2022 – an increase of 34%.
- Hyderabad added approx. 14,620 units in Q1 2023, a yearly decline of 32% over the corresponding period last year. Over 52% new supply was added in the high-ticket price segment priced >INR 1.5 Cr.
- Bangalore added approx. 13,560 units in Q1 2023, yearly increase of just 3%. Approx. 74% new supply was added in the mid-range and premium segments, i.e., the INR 40 Lakh – INR 1.5 Cr. price bracket.
- NCR saw an increase of 34% in new launches against Q1 2022 with approx. 12,450 units launched in Q1 2023.
- Chennai added approx. 6,410 units in Q1 2023, a yearly increase of whopping 110% over Q1 2022. It was the only city to see three-digit growth in new supply.
- Kolkata added approx. 5,850 units in Q1 2023, an increase of 50% over Q1 2022. Approx. 70% new supply was added in the mid-segment priced between INR 40 lakh – INR 80 Lakh.
| City-wise Supply (In Units) and Q-o-Q percentage change | |||||
| Cities Name | Q1-2023 | Q4-2022 | % Change (Q4-2022 Vs Q1-2023) | Q1-2022 | % Change (Q1-2022 Vs Q1-2023) |
| NCR | 12,450 | 5,590 | 123% | 9,300 | 34% |
| MMR | 37,260 | 35,280 | 6% | 23,640 | 58% |
| Bangalore | 13,560 | 9,560 | 42% | 13,210 | 3% |
| Pune | 19,420 | 18,560 | 5% | 14,490 | 34% |
| Hyderabad | 14,620 | 15,140 | -3% | 21,550 | -32% |
| Chennai | 6,410 | 3,070 | 109% | 3,050 | 110% |
| Kolkata | 5,850 | 5,650 | 4% | 3,900 | 50% |
| Total | 1,09,570 | 92,850 | 18% | 89,140 | 23% |
Source: ANAROCK Research
Overall Sales Overview
Approx. 1,13,770 units were sold in Q1 2023 – an increase of 14% over Q1 2022. NCR, MMR, Bengaluru, Pune, and Hyderabad together accounted for 89% of sales in the quarter.
- Pune saw 19,920 units sold in Q1 2023, increasing by 42% over Q1 2022.
- NCR is the only city to see a decline (of 9%) in housing sales among all cities – from 18,835 units in Q1 2022 to nearly 17,160 units in Q1 2023.
- Housing sales in Kolkata increased by 3% over Q1 2022, with approx. 6,180 units sold in Q1 2023.
- MMR and Bangalore saw housing sales increase by 19% and 16% respectively in Q1 2023 against Q1 2022, with approx. 34,690 and 15,660 units sold, respectively.
- Chennai saw approx. 5,880 units sold – an increase of 18% over Q1 2022.
- Hyderabad recorded sales of 14,280 units in Q1 2023, a spike of 9% over Q1 2022.
| City wise Absorption (In Units) and Q-o-Q percentage change | |||||
| Cities Name | Q1-2023 | Q4-2022 | % Change (Q4-2022 Vs Q1-2023) | Q1-2022 | % Change (Q1-2022 Vs Q1-2023) |
| NCR | 17,160 | 14,570 | 18% | 18,835 | -9% |
| MMR | 34,690 | 28,420 | 22% | 29,130 | 19% |
| Bangalore | 15,660 | 11,830 | 32% | 13,450 | 16% |
| Pune | 19,920 | 16,550 | 20% | 14,020 | 42% |
| Hyderabad | 14,280 | 11,510 | 24% | 13,140 | 9% |
| Chennai | 5,880 | 3,810 | 54% | 4,985 | 18% |
| Kolkata | 6,180 | 5,480 | 13% | 5,990 | 3% |
| Total | 1,13,770 | 92,170 | 23% | 99,550 | 14% |
Source: ANAROCK Research
Price Movement
Average residential property prices across the top 7 cities increased in the range of 6-9% in Q1 2023 when compared to Q1 2022, mainly due to an increase in the prices of construction raw materials and overall rise in demand. MMR and Bangalore recorded the highest 9% annual jump.
Available Inventory
Despite massive new supply being added to the top 7 cities in Q1 2023, we saw available inventory stay more or less static in Q1 2023 as compared to Q1 2022. The total available inventory in the top 7 cities as of Q1 2023-end stands at approx. 6.27 lakh units. NCR witnessed the highest reduction in available inventory in Q1 2023 when compared to Q1 2022 – by 22%.
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