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The first nine months of 2023 saw residential sales of 196,220 units recorded in the top 7 cities, the highest since 2008, and are expected to surpass 215,000 units by the end of 2023, according to JLL India’s Residential Market Update, Q3 2023.
The robust quarterly sales of 69,600 units were backed by commensurate quality launches by the developers, the report said.
“On a sequential basis, sales saw an uptick of 7.9 per cent in Q3 2023. It is interesting to note that residential sales broke all records with average quarterly sales of over 65,000 units until the third quarter of 2023. The prominent launches by branded developers saw good sales traction across all 7 cities,” saidSiva Krishnan, Head, Residential, India, JLL.
Mumbai and Bengaluru led the Q3 sales, accounting for 46.6 per cent of the share. Mumbai sprang to the top with a 23.7 per cent share, recording sales of more than 16,500 units. Bengaluru accounted for 22.9 per cent of the share. Chennai and Hyderabad also saw an increase in sales as compared to the previous quarter.
One differentiating trend that emerged during Q3 2023 was that the premium segment priced above Rs. 1.5 crore had the highest contribution (24.3 per cent) of the quarterly sales, showing the increasing appetite of buyers towards larger homes with superlative amenities and specifications, according to the report. Homeowners are upgrading to bigger homes as developers launch such projects, taking cognizance of this demand trend. The share of all other segments except the premium declined sequentially in Q3 2023.
As of Q3 2023, unsold inventory at various stages of construction across the top seven cities of India increased by 0.6 per cent on a q-o-q basis, with new launches outpacing sales. Mumbai, Hyderabad, and Bengaluru together accounted for 64 per cent of the unsold stock. An assessment of years to sell (YTS) shows that the expected time to liquidate the stock has declined from 2.5 years in Q2 2023 to 2.3 years in Q3 2023, indicating robust sales growth.
Going forward, the demand for residential apartments will be backed by a robust supply pipeline as some branded developers have announced new launches and entry into newer markets, including peripheral micro markets where infrastructure augmentation is in process or planned.
Moreover, strategic land acquisitions in prime locations as well as in growth corridors to strengthen the supply are taking place across the country. Therefore, there is an expectation that the residential market will remain buoyant and achieve the next wave of growth and expansion with a good response from buyers in the mid and premium segments.
On the back of robust demand, there is an increase in residential prices across the bigger residential markets. Bengaluru witnessed the maximum appreciation in prices to the tune of 14.8 per cent on a yearly basis, while in Mumbai prices increased by around 10.3%. Delhi NCR also saw an average 8.5 per cent rise in capital values. New launches as well as new phases of existing projects have also entered the market at higher prices in some cities.
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