India's Top 8 Housing Markets See Bumper Growth, Sales Rise By 22%: Report

India’s leading eight residential markets have demonstrated robust growth, with a 22% increase in sales and a 17% rise in new supply during the third quarter of the calendar year (July-September 2023), as per the latest data by PropTiger.com.

PropTiger.com released its ‘Real Insight Residential – July-September 2023’ report highlighting that sales of residential units have climbed to 1,01,220 units in the third quarter from 83,220 units in the same period last year.

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All cities, except Chennai, registered a growth in sales, with Mumbai Metropolitan Region (MMR) and Pune accounting for nearly half of the total volume.

The quarterly report tracks eight major housing markets, including Delhi-NCR, MMR, Chennai, Kolkata, Bengaluru, Hyderabad, Pune, and Ahmedabad.

The data of the housing market includes sales of apartments and villas. Delhi-NCR includes the micro markets of Gurugram, Greater Noida, Noida, Faridabad and Ghaziabad. The MMR includes Mumbai, Thane and Navi Mumbai.

Vikas Wadhawan, CFO, REA India and business head, PropTiger.com, said, “The housing markets in the top eight cities continue to gain momentum. The strong demand is bolstered by positive consumer sentiment.”

Wadhawan noted factors like pent-up demand, increased disposable income, stable interest rates, and renewed investor demand as key drivers of the sales growth.

City-wise trends

• PropTiger.com data show that Y-o-Y housing sales in Ahmedabad have risen 31 per cent to 10,300 units from 7,880 units.
• Sales in Bengaluru have registered the maximum growth of 60 per cent to 12,590 units from 7,890 units.
• Delhi-NCR recorded sales growth of 44 per cent to 7,800 units from 5,430 units.
• Hyderabad has witnessed a 34 per cent growth in sales to 14,190 units from 10,570 units.
• A 43 per cent growth in sales has been seen in Kolkata to 36,10 units from 2,530 units.
• Sales in Mumbai have witnessed only a modest 5 per cent increase to 30,300 units from 28,800 units because of a higher base.
• Sales in Pune have grown 18 per cent to 18,560 units from 15,700 units.
• Chennai is the only market that registered a decline in sales with unit sales dropping by 12 per cent to 3,870 units from 4,420 units.

Wadhawan added “the market is consolidating with demand centering around reputed developers, which instils new-found confidence in homebuyers, particularly for under-construction projects. This was not the case a few years ago.”

In the Q3 period, 14% of units sold were ready to move in, and 31% of sales occurred in the above Rs 1 crore price segment.

Ankita Sood, head of research, PropTiger.com, Housing.com, and Makaan.com, said “ Despite global challenges, property markets in India are looking up across cities. We are in the midst of a residential real estate upcycle, with the July-September quarter seeing a surge in property sales by 22 per cent and new launches registering a 17 per cent Y-o-Y growth. We anticipate the festive season to further boost sales, potentially pushing annual figures to new heights.”

Regarding new supply, Ahmedabad led the way with significant growth to 16,670 units, while other cities showed mixed trends. However, the overall landscape remained positive, with a 17% increase in launches across the eight markets, amounting to 123,080 new units.