The Bull Run in the Indian housing market continued in the first quarter of the year. Quarterly housing sales are at an all-time decadal high with approximately 130,170 units sold in Q1 2024 across the top 7 cities, reveals latest Anarock data. This is a 14% yearly rise against approximately 113,775 units sold back in Q1 2023.
Anuj Puri, Chairman, ANAROCK Group, says "MMR and Pune accounted for over 51% of the total sales in the top seven cities, with MMR recording a 24% yearly jump and Pune witnessing an over 15% yearly rise. New launches across the top seven cities continued above the one lakh mark but witnessed a mere 1% yearly rise ? from 1,09,570 units in Q1 2023 to over 1,10,865 units in Q1 2024."
?Notably, MMR and Hyderabad saw the maximum new supply, accounting for 51% of the total new launches across the top 7 cities," says Puri. "Hyderabad saw a 57% yearly increase in new supply in Q1 2024, while MMR saw its new supply decline by 9% in the period. The quarter has recorded the highest ever sales in the last decade amid a significant rise in demand for high-ticket priced homes priced Rs 1.5 crore and above.?
Despite new launches remaining above the one lakh mark in this quarter, available inventory in the top 7 cities dropped by 7% annually ? from approx. 6,26,750 units by Q1 2023-end to approx. 5,80,890 units by Q1 2024-end. Among the top cities, NCR saw highest decline of 27% in its unsold stock in Q1 2024. NCR's unsold stock is currently lower than in other prominent cities like MMR, Pune, and Hyderabad.
India's overall economic scenario remains positive, with the country?s GDP growth rate pegged as the highest globally, and inflation also seems to be under control. This outlook supports enduring homebuyer sentiment.
New Launch Overview The top 7 cities recorded new launches of around 110,865 units in Q1 2024 against 1,09,570 units in Q1 2023, increasing by just 1% over the previous year?s corresponding period. The key cities contributing to new launches in Q1 2024 were MMR (Mumbai Metropolitan Region), Hyderabad, Pune, and Bengaluru, which together accounted for 83% of the quarter's supply addition. ? MMR saw approx. 33,800 units launched in Q1 2024 ? a decline of approx. 9% over Q1 2023. More than 59% of the new supply was added in the sub- Rs 80 lakh budget segment. ? Hyderabad added approx. 22,960 units in Q1 2024 - a yearly jump of 57% over the corresponding period last year. Over 33% of the new supply was added in the high-ticket > Rs 1.5 crore) price segment. ? Pune added approx. 18,770 new units in Q1 2024 compared to 19,420 units in Q1 2023 ? a decrease of 3%. ? Bengaluru added approx. 16,485 units in Q1 2024 - a yearly increase of 22%. Approx. 66% of the new supply was in the mid-range and premium segments (Rs 40 lakh ? Rs 1.5 crore) ? NCR saw new supply dip by over 42% against Q1 2023, with approx. 7,270 units launched in Q1 2024 against 12,450 units in Q1 2023. Notably, 55% of the new supply was added in the ultra-luxury segment (homes priced > Rs 2.5 crore) ? Chennai added approx. 7,290 units in Q1 2024, a yearly increase of 14% over Q1 2023. At least 87% of the new supply was in the mid and premium segments (priced within Rs 40 lakh to Rs 1.5 Cr) ? Kolkata added approx. 4,290 units in Q1 2024, a decline of 27% over Q1 2023. Approx. 90% of the new supply was in the affordable and mid segments (priced up to Rs 80 lakh.)
