Festive Housing Sales Soar, Set to Break Records in 2023
Festive housing sales are anticipated to witness a significant upswing in 2023, surpassing a three-year record and expected to exceed the 150,000-unit mark during the Diwali season.
HYDERABAD: Festive housing sales are anticipated to witness a significant upswing in 2023, surpassing a three-year record and expected to exceed the 150,000-unit mark during the Diwali season. This surge is notably higher than the corresponding festive periods in 2022 and 2021. The ‘India Market Monitor Q3 2023’ report by CBRE South Asia, a commercial real estate services and investment firm, indicates that housing unit sales during the festive season of 2022 reached 147,300, while the same period in 2021 recorded sales of 114,500.
The October-December quarter is projected to attract a substantial number of first-time buyers due to the deluge of offers and discounts in the real estate market. Additionally, individuals who have been hesitant (fence-sitters) are expected to make decisions, influenced by these festive season promotions. Anshuman Magazine, Chairman and CEO-India, Southeast Asia, Middle East, and Africa at CBRE, explains that the pause in interest rate hikes has prompted real estate developers to introduce various incentives and schemes to attract first-time buyers. The premium and luxury segment are anticipated to be particularly attractive for high-net-worth individuals (HNIs) and NRIs seeking to secure their investments.
As the residential cycle matures amidst inflationary pressures, there is an observed increase in demand in the mid-end and premium categories. Conversely, the premium and luxury segment is positioned as a sought-after investment avenue, especially for HNIs and NRIs looking to safeguard their investments amid global macroeconomic uncertainties, according to Magazine.
Residential sales during the January-September 2023 period surpassed 230,000 units, reflecting a year-on-year growth of 5 percent. Mid-end projects led the sales, constituting nearly half of the total, followed by high-end affordable projects. Mumbai, Pune, and Bengaluru collectively contributed to 62 percent of the sales during this period, prompting developers to launch approximately 220,000 new housing units. Mumbai and Pune dominated new launches during the first nine months of the year, with Mumbai, Pune, and Hyderabad capturing a significant share of 64 percent.
In the July-September 2023 quarter, more than 80,000 residential units were sold, accompanied by the launch of 72,000 new units. Mumbai, Hyderabad, and Pune took the lead in apartment launches, commanding a cumulative share of 63 percent.
Pune, Mumbai, and Bangalore accounted for the majority of residential sales during this period, with a combined share of 62 percent. The mid-end category comprised 46 percent of residential sales in the quarter, while the high-end and premium categories held a cumulative share of 35 percent.
