Housing sales in volume terms grew 11% across 7 cities in Q3: ICRA
- IBEF
- March 9, 2023
According to Investment Information and Credit Rating Agency of India Limited (ICRA) data, housing sales (in volume) grew by 11% in Q3 FY23 across the top 7 cities, recording 149 million square feet (MSF), the highest quarterly sale in the past 10 years. In contrast to the same period last year, the area sold climbed to 412 MSF in the first nine months of FY23 from 307 MSF. The overall sector composition has gradually shifted, with a growth in the share of the luxury and mid segments in overall sales throughout the top seven cities — Bengaluru, Chennai, Hyderabad, Kolkata, Mumbai Metropolitan Region (MMR), National Capital Region (NCR), and Pune.
Luxury and mid-market sales as a percentage of total sales climbed from 14% and 36%, respectively, in FY20 to 16% and 42% from April through December of FY23. This is based on a sampling of the top 12 real estate developers. In FY23 and FY24, it is anticipated that the value of the area sold in the residential real estate industry will increase by 8–12% and 14–16%, respectively.
The affordability continues to be strong despite the Reserve Bank of India's (RBI) rate increases during the current fiscal year, and house loan interest rates are still lower than their peak before Covid. The amount of unsold inventory decreased from 923 MSF in December 2021 to 839 MSF in December 2022. With a higher share of luxury units in the product mix and a partial pass-on of rising input prices, the average sale price increased by 10% on a YoY basis in Q3 of FY23.
Disclaimer: This information has been collected through secondary research and IBEF is not responsible for any errors in the same.
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