Over 45% property seekers in NCR are looking to buy 3BHK homes in the near future. In the expensive MMR, 2BHKs appear to dominate the preference charts of 43% of respondents in this region, but over 32% buyers there are looking to buy 3BHKs.
The cumulative unsold stock in the top 7 cities saw a 12% decline in the last 5 years – from 7,13,400 units by Q1 2018-end to approx. 6,26,750 units by Q1 2023-end.
The residential market’s winning streak continued in the first quarter of 2023 with housing sales in top cities breaching the previous high of Q1 2022. The quarter has recorded the highest-ever sales in the last decade amid a significant rise in demand for high-ticket priced homes (>INR 1.5 Cr).
Affordable Housing Supply Share at 20% in 2022 – Where Is It Headed?
Despite all these upheavals and market realignments in the past three years, India's housing market remained remarkably resilient and even thrived. However, there seems to have been one major 'fatality' - affordable housing. Once the source of considerable political hype, this segment is not merely just languishing today - it seems to be in the ICU. What happened?
Over the last decade, women have emerged as a major residential real estate buyer segment, especially in the urban centres. Their preferences are also distinctly shaping newer trends - from bigger homes, ready-to-move properties to specific budgets, they know exactly what they want. And like millennials, their preferences now influence the supply that developers put on the market
The mid-range (INR 40 - 80 lakh), premium (INR 80 lakh – INR 1.5 Cr), and luxury segments (>INR 1.5 Cr) were the showstoppers of 2022. In contrast, affordable housing had a lean time, with more buyers in this segment going into wait-and-watch mode; unsurprisingly, new supply in this category reduced markedly.
Hyderabad saw 7 separate deals for 769+ acres, accounting for over 46% of the total land transacted between Jan-Sept. NCR sealed 16 separate transactions accounting for 14% of the total land deals covering approx. 234 acres.
The absorption of Grade A warehousing increased from 34 Mn sq. ft in 2018 to 48.5 Mn sq. ft in 2021 at a CAGR of 12.6%. Supply rose from 37.8 Mn sq. ft to 51 Mn sq. ft in the same period at a CAGR of 10.6%. The top 7 Indian cities witnessed approx. 160+ Mn sq. ft of Grade A warehouse leasing
The first half of FY23 was a highly upbeat period for the residential market in the top 7 cities, allying fears that housing sales could be impacted by rising property prices and interest rates. The numbers show that Diwali came early for developers, with homes worth INR 1.56 lakh Crore sold across the top 7 cities in H1 FY23.
While it leads in terms of disposal of cases, UP has seen the lowest growth of 22% in project registrations in the past three years. In October 2019, the state had approx. 2,710 registered projects while the current number stands at approx. 3304 projects, indicating that the primary focus in UP has been on project completions rather than new launches.