- Samantak Das
- Rohan Sharma
- Shweta Kakkar
The residential market in Q3 2023, recorded the highest quarterly sales since 2008, with the high-end segment contributing for most of the demand. The robust quarterly sales of 69,600 units were backed by commensurate quality launches by the developers. On a sequential basis, sales saw a q-o-q uptick of 7.9% in Q3 2023. It is interesting to note that residential sales broke all records with average quarterly sales of over 65,000 units till the third quarter of 2023.
One differentiating trend that emerged during Q3 2023 was that the premium segment priced above INR 1.5 crore had the highest contribution (24.3%) in quarterly sales. Moreover, the share in sales of all other segments except the premium, declined sequentially in Q3 2023. This shows the increasing appetite of buyers for larger homes with superlative amenities and specifications. Also, it is observed that with homeowners upgrading to bigger sized homes, developers are launching such projects taking cognizance of this demand trend.
- Residential sales in the first nine months of 2023 reached 91% of year 2022 annual sales :During the first nine months of 2023, sales of 196,227 units were recorded across the top 7 cities – the highest since 2008. YTD 2023 sales has already reached 91% of 2022 annual sales (215,000 units) and is likely to surpass the same by year end. It has also seen a 21% y-o-y growth as the prominent launches by branded developers saw good sales traction across all the 7 cities.
- Bengaluru, Mumbai, and Pune constitute 62% of the quarterly sales: Mumbai and Bengaluru led the Q3 sales, together accounting for 46.6% share. Mumbai moved up to the top position with 23.7% share recording sales of more than 16,500 units. Bengaluru was not far behind with 22.9% share. Pune and Delhi NCR as well recorded healthy sales backed by quality launches by branded developers.
- Launches witness a healthy growth during January-September 2023:Despite a marginal decline in the pace of launches during Q3 2023, the first nine months clocked a robust y-o-y growth of 21.5% and stood at 223,905 units. Around half of the launches (49%) were recorded in Mumbai and Pune. Driven by the ongoing festive season, robust new launches are expected in the coming quarter with developers announcing new projects and rolling out festive schemes and offers to boost sales.