In a remarkable feat, India’s top seven property markets achieved an all-time high in residential sales during the April-June quarter. According to Anarock, a leading property consultant, a staggering 1.15 lakh homes were sold in the last three months, surpassing the January-March quarter by one percent. This figure represents a remarkable 36 percent increase compared to the same period last year when 84,940 units were sold, despite the earlier rate hike and global economic uncertainties.
Anuj Puri, Chairman of Anarock, noted that the housing market has yet to feel the impact of the home loan rate hike and global economic headwinds. The momentum remains strong, even in the second quarter of 2023.
Notably, Mumbai and Pune accounted for over half of the homes sold in the quarter, contributing to 51 percent of total sales. Pune witnessed a remarkable 65 percent surge in yearly sales growth. Both cities outperformed their own January-March numbers, with Mumbai and Pune registering a four percent and 10 percent increase, respectively, while other cities experienced a dip in sales.
Moreover, Mumbai and Pune also witnessed a significant influx of new inventory, with 43,490 and 21,350 launches, respectively, accounting for 63 percent of total residential launches in the country during the April-June quarter. The pan-India launch scenario is impressive, considering that despite a six percent quarter-on-quarter dip, there was a 25 percent year-on-year growth with 82,150 units launched in the quarter.
Dhaval Ajmera, Director of Ajmera Realty and Infrastructure, attributed the robust housing demand in the Mumbai Metropolitan Region (MMR) to ongoing infrastructural developments, the need for quality homes, and the redevelopment boom. In Pune, improved connectivity and infrastructural growth between Mumbai and Pune, along with location advantages, have fueled growth in the mid-segment housing and commercial space segments.
The surge in sales can be attributed to an average eight percent price hike across the seven property markets. Hyderabad recorded the highest price increase at 10 percent, followed by Bengaluru, the National Capital Region (NCR), and Mumbai, each reporting a nine percent rise. Mid-segment homes priced between Rs 40 lakh and 80 lakh accounted for nearly 31 percent of all homes sold during the quarter.
Anarock highlighted that the sales surge in the quarter has led to a decline in available inventory levels across all cities. The total available inventory has decreased by two percent, from 6.25 lakh units in April-June 2022 to 6.14 lakh units presently. The NCR witnessed a substantial inventory decline of 21 percent.
The impressive performance of the housing market in Mumbai and Pune, along with other key cities, has propelled the overall residential sales record in India. Despite challenges and uncertainties, the sector remains resilient and poised for further growth in the coming months.