Housing sales in Tier-01 cities surpasses new launches by 32% in Q1 CY’23

New Delhi April 18, 2023: According to a recent report from data and analytics firm PropEquity, the Indian real estate market is experiencing a surge in housing sales, with a 7 per cent increase in the first quarter of 2023 in the top fourteen cities.

This growth in the Indian residential market in Q1 2023 was driven by several factors, including infrastructure growth, government policies and robust launches. The top three cities in terms of quarterly sales were Pune, Thane and Hyderabad, with Pune leading the market with 25,536 units sold in Q1 CY’23 having a market share of around 21% of the total absorption witnessed in the top 14 cities. 

According to the report, there has been a decline in the number of new residential units launched in India. This trend has been observed since the onset of the COVID-19 pandemic in 2020, and it is believed to be due to the clearance of earlier stock. In the first quarter of 2023, there was an 18% decrease in the number of new launches, with 93,600 residential units compared to 113,491 units launched in the first quarter of 2022. The decrease in new launches may have been influenced by various factors, such as the current market conditions, supply chain disruptions and delays in construction activities.

“The residential market in India saw significant growth Q1 2023, and it started to play a big role in the economy of the nation. Market resurrection has been brought about by the recovery trend since last year, with quarterly sales surpassing the new launches in this quarter by 32%. 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. With nearly 1,23,938units sold in the first quarter of this year, the residential market has entered a new stage of development and new standards have been set.” Samir Jasuja, Founder and Managing Director at PropEquity said.

With spiraling new launches and housing sales in this and the previous quarter, the available inventory in the top 14 cities is at about 5,17,879 units by March 2023 end. On a year-on-year (Y-o-Y) basis, unsold stock saw a 14 per cent dip across the cities, which indicates the sales are surpassing the current new launches which is beneficial for the market.