The Indian real estate market has been experiencing a remarkable surge in demand in property, particularly in the high-end segment. The period of Q3 2023 has witnessed unprecedented growth in real estate sales, with properties priced over ₹1 crore leading the charge.
In this blog, we will delve into the bullish conditions of the Indian real estate market and explore the factors contributing to this surge in property.
Bullish Conditions in the Indian Real Estate Market
Luxury realtor and social media content creator with over 245k followers on Instagram, Snehil Yadav says “The Indian real estate market has shown remarkable resilience and growth in Q3 2023, defying economic uncertainties and global challenges.”
Let’s take a closer look at the key factors that have contributed to this bullish trend with regards to property –
Surge in Demand: During Q3 2023, the Indian real estate market recorded the highest quarterly sales in six years, with a total of 82,612 residential units sold. This marked a substantial 12% year-on-year growth. The surge in demand has been primarily driven by the mid and high-end residential segments.
High-End Properties Thriving: Property that is priced over ₹1 crore witnessed an impressive 39% year-on-year increase in sales. This demonstrates the strong appetite among affluent homebuyers for premium real estate offerings. Major cities like Mumbai, NCR, and Bengaluru have seen robust sales in this category.
Mid-Segment on the Rise: The mid-segment, consisting of properties ranging from ₹50 lakh to ₹1 crore, also experienced a healthy 14% year-on-year rise in sales. This indicates a broader base of buyers looking for quality housing options.
Affordable Segment Challenges: In contrast, the affordable segment, comprising homes priced below ₹50 lakh, faced a 10% year-on-year decline in sales, totaling 24,143 units. This decline could be attributed to rising property prices in this category.
City-Wise Demand Analysis (Q3 2023)
Let’s take a closer look at the demand for properties across different price segments in major Indian cities:
Mumbai: Leading the way in high-end sales with 9,930 units, Mumbai also recorded 7,018 units sold in the affordable segment.
Bengaluru: Witnessed strong demand for properties between ₹50 lakh and ₹1 crore, with 6,879 units sold.
NCR: Showed robust sales in both high-end and affordable segments, with 8,075 units and 2,086 units sold, respectively.
Pune: Recorded significant sales in both high-end (4,688 units) and affordable (2,306 units) categories.
Hyderabad: Demonstrated strong demand for properties priced above ₹1 crore, with 4,329 units sold.
Kolkata: Saw moderate sales across segments, with the highest number of units in the affordable category (1,523 units).
Chennai: Experienced steady demand, particularly in the mid-segment, with 1,432 units sold.
Ahmedabad: Showed balanced demand across all segments, with 609 units in the affordable category.
Price Trends in Major Markets For Property
The increase in demand has led to rising property prices in various Indian markets. Here’s a snapshot of the average price change across major cities during Q3 2023:
Hyderabad: Recorded the highest year-on-year price increase at 11%, primarily driven by premium property offerings.
Kolkata: Witnessed a 7% year-on-year price increase, coupled with a significant 5% quarter-on-quarter change.
Bengaluru: Experienced a 6% year-on-year price increase, reflecting the growing demand for properties in the city.
Mumbai: Saw a 6% year-on-year price increase, with stable prices in the quarter.
Pune: Recorded a 5% year-on-year price increase, indicating sustained demand in the market.
Ahmedabad: Experienced a 4% year-on-year price increase, with stable prices in the quarter.
NCR: Saw a 4% year-on-year price increase, coupled with a 1% quarter-on-quarter change.
Chennai: Witnessed a 3% year-on-year price increase, with a 2% quarter-on-quarter change.
The Indian real estate market is currently witnessing a bullish trend, driven by strong demand for high-end properties priced over ₹1 crore. Despite economic challenges and global uncertainties, the real estate sector has shown remarkable resilience and growth. Developers have responded by launching new projects to cater to this robust demand, and prices have risen in line with this growing interest.
While the mid and high-end segments are flourishing, the affordable segment faces challenges. Further interventions may be required to stimulate demand in this category and enhance development viability. The surge in office space transactions also indicates a positive outlook for India’s stable economy, with Mumbai leading the way as the most active office market.
In conclusion, the Indian real estate market continues to thrive, offering opportunities for both developers and homebuyers, particularly in the high-end segment. This bullish trend reflects confidence in India’s real estate sector and its potential for future growth.