Diwali special: Festive housing sales will see a massive rise in this year as they are likely to break a three-year record and expected to surpass the 150,000-mark in the festive season 2023. This is much higher than the festive season of 2022 and 2021 respectively. While the festive period of 2022 saw sales of 147,300 housing units, the same period in 2021 logged sales of 114.500 housing units, according to ‘India Market Monitor Q3 2023’ report by commercial real estate services and investment firm CBRE South Asia.
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The October-December quarter will likely attract a significant number of first-time buyers given the raining offers and discounts in the real estate market during the festive season whereas fence-sitters are likely to make a decision by factoring in these offers and discounts, Anshuman Magazine, Chairman and CEO- India, Southeast Asia, Middle East and Africa, CBRE explained.
Due to the pause in interest rate hikes, real estate developers have offered various incentives and schemes to attract first-time buyers, he noted. He also said that premium and luxury segment is expected to emerge as a sought-after investment avenue, especially for high-net-worth individuals (HNIs) and NRIs looking to safeguard their investments.
“As the residential cycle matures amidst inflationary pressures, we have witnessed increasing demand in the mid-end and premium categories. Conversely, the premium and luxury segment is expected to emerge as a sought-after investment avenue, particularly for HNIs and NRIs seeking to safeguard their investments amid global macroeconomic uncertainties,” Magazine further said.
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Residential sales during Jan-Sept 2023 period
During the January-September 2023 period, overall residential sales across price categories crossed the 230,000 mark, registering an on-year growth of 5 per cent. During this period, mid-end projects led residential sales as they accounted for almost half of the total sales, followed by high-end affordable projects.
Mumbai, Pune, and Bengaluru cumulatively accounted for a 62 per cent share in sales during the Jan-Sept 2023 period. The sustained momentum in demand prompted developers to launch around 220,000 new housing units during the same period. Mumbai and Pune also continued their dominance when it came to the new launches during the first nine months of the year. Mumbai, Pune and Hyderabad captured a significant share of 64 per cent in new launches.
Residential sales during Jul-Sept 2023 quarter
During this period, over 80,000 residential units were sold whereas 72,000 new units were launched. Mumbai, Hyderabad and Pune dominated the market for apartment launches as they commanded a cumulative share of 63 per cent. Pune, Mumbai and Bangalore accounted for maximum sales of residential sales in this period as they had a cumulative share of 62 per cent.
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Mid-end category comprised 46 per cent of residential sales in the quarter whereas high-end and premium categories had a cumulative share of 35 per cent.
