Housing sales in India during January-June 2023 touched 1,56,640 units, according to a report by real estate consultant Knight Frank India. It said the housing prices also increased by 2-10 per cent year-on-year.
In the luxury segment, homes priced above Rs 1 crore grew from 25 per cent in H1 2022 to 30 per cent in H1 of 2023. It was followed by the mid-segment homes priced between Rs 50 lakh-Rs 1 crore which rose from 35 per cent to 38 per cent, but the sales of affordable homes priced below Rs 50 lakh continued to plummet, shrinking 21 per cent year-on-year. The mid-segment grew 9 per cent year-on-year, while the luxury segment saw a growth of 17 per cent year-on-year.
Releasing its bi-annual report for India’s top eight realty market on Tuesday, real estate consultant Knight Frank India said housing sales in Mumbai fell 8 per cent to 40,798 units in January-June from 44,200 units in the year-ago period.
However, the gross office space leasing in the financial capital rose 9 per cent to 3.2 million square feet from 3 million square feet.
In Delhi-NCR, housing sales were up 3 per cent to 30,114 units from 29,101 units. Office space leasing in NCR increased 24 per cent to 5.1 million square feet from 4.1 million square feet.
Sales of residential properties in Bengaluru were down 2 per cent to 26,247 units from 26,677 units. But, office leasing in Bengaluru fell 10 per cent to 7 million square feet from 7.7 million square feet.
In Pune, housing sales fell 1 per cent to 21,670 units from 21,797 units. Leasing of office space fell 30 per cent to 2.3 million square feet from 3.3 million square feet.
Housing sales in Chennai rose 3 per cent to 7,150 units from 6,951 units. Interestingly, the leasing of office space in Chennai jumped over two-fold to 4.5 million square feet from 2.2 million square feet.
In Hyderabad, housing sales increased 5 per cent to 15,355 units from 14,693 units. In contrast, the leasing of office space in Hyderabad declined 8 per cent to 2.9 million square feet from 3.2 million square feet.
Sales of residential properties in Kolkata went up 3 per cent to 7,324 units from 7,090 units. But, office demand fell 3 per cent to 0.6 million square feet.
In Ahmedabad, housing sales decreased 3 per cent to 7,982 units in January-June period this year from 8,197 units in the year-ago period. Office space leasing dropped sharply by 59 per cent to 0.5 million square feet in the first half of this year from 1.3 million square feet in the corresponding period of 2022.
Knight Frank India CMD Shishir Baijal told reporters that housing and office markets across major cities have remained steady in the first half of this calendar year despite rise in interest rates on home loans and global headwinds.
On housing market, he said a strong positive consumer sentiment was observed and sales have remained above 1.5 lakh units consistently in the six- month period.
Baijal noted that the share of sale of luxury homes in the overall housing sales has risen. The housing demand is driven by mid and premium segment while the share of affordable housing in sales has come down.
Mohit Jain, managing director of Krisumi Corporation, said sales have increased on strong demand for properties across all price bracket. “Strong appetite to own housing properties is driving sales… With interest rates having stabilized and expected to start falling by the end of this year, sales momentum is expected to continue,” Jain added.
On the office market, Knight Frank highlighted that leasing of office space by co-working operators is at a record high of 6.8 million square feet, its share of transactions at a record high of 26 per cent.
What Industry Players Say
Naveen Kumar, director of Navraj Infratech, said, “The residential sector has demonstrated resilience and potential for growth, clocking the second-highest sales volume in nearly a decade. Despite slight year-on-year fluctuations, this achievement signifies a positive shift in market dynamics. The sustained demand for residential properties, notably the premium residential segment, experienced substantial growth. Looking ahead, we expect the momentum to continue. It will be primarily driven by end-users and investors, particularly in high-end and luxury segments.”
Rajjath Goel, managing director of MRG Group, said, “The first half of 2023 has seen a significant increase in sales, indicating a positive momentum for the real estate sector. The sale has been the second highest in the last ten years, showcasing the sector’s promising growth and development. Buyers are seeking quality properties that not only fulfil their living or business requirements but also serve as solid investment assets. We are committed to delivering exceptional projects that meet our customers’ aspirations and offer them the opportunity to capitalise on the sector’s upward trajectory. We are excited about the future of the real estate industry and the value it continues to create for both developers and buyers alike.”
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