In Q1 2023, the Indian real estate market experienced significant growth.
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In seven major Indian cities, sales of apartments surged by 20% between January and March, reaching 62,040 units, according to a survey by JLL India. This is the greatest quarterly sales in the previous 15 years. The expansion of the infrastructure, government initiatives, and aggressive launches were some of the reasons that contributed to the residential market’s rise in India in the first quarter of 2023. Bengaluru, Mumbai, and Pune were the top three cities in terms of quarterly sales, with Bengaluru dominating with a 21% market share.
With a 22% share of total sales, the luxury segment of apartments costing more than Rs 1.5 crore reflected the growing desire for larger residences with high-quality facilities and supporting infrastructure.
Launch of 75,000 Residential Units in Q1 2023
The survey also revealed a rise in new product launches as a result of developers profiting from strong sales made possible by the Indian economy’s resiliency. The first quarter of 2023 saw the launch of 75,000 residential units, the most in more than a decade and not far from the previous peak of 82,757 units in 2012. Apartments costing more than Rs 1.50 crore are included in the premium class, which accounts for 27% of all new releases.
However, projects with high demand and little ready-to-move inventory are all experiencing price increases. Making it more difficult for people to afford homes is the emergence of even new phases of ongoing housing projects at higher prices. From 22% in Q1 2022 to 18% in Q1 2023, the proportion of cheap flats priced under Rs 50 lakh in quarterly sales declined.
The estimated time to sell the stock has decreased from 2.9 years in Q4 of 2022 to 2.7 years in Q1 of 2022, according to an analysis of years to sell (YTS), which indicates strong sales growth.
Demand for Luxury Housing Increases
“In the first quarter of 2023, India’s residential industry saw substantial growth and emerged as a significant contributor to the nation’s GDP. A tremendous market resurrection has been brought about by the recovery trend since last year, with quarterly sales surpassing all previous highs and continuing to rise. All parties worked together to fuel this growth and quickly adjusted to shifting customer demands. Residential sales and launches reached record highs as branded developers upped their game and provided supplies. New benchmarks are being set as a result of the sales of more than 62,000 units in the first quarter of this year, according to Siva Krishnan, Head of Residential Services for India at JLL.
“The residential sector has exhibited excellent growth in the first quarter of 2023, despite a 250 basis-point hike in the repo rate by the RBI since May 2022. Sales figures indicate that the affordable, mid, and premium segments are all performing well. Delhi NCR and Mumbai have seen the maximum sales for apartments priced over Rs 1.5 crore and have also had significant launches in the premium segment. As a result, some recent launches by well-known developers have seen record sales, according to Samantak Das, Chief Economist and Head Research & REIS, India, JLL.
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