Housing sales improve in top metro cities across India

As per the latest report from ICRA, the housing sales have increased by 11 percent in the third quarter of FY2022-23 in seven cities of India, including Bangalore, Chennai, National Capital Region (NCR), Hyderabad, Kolkata, Mumbai Metropolitan Region (MMR), and Pune.

As per the latest report from ICRA, the housing sales have increased by 11 percent in the third quarter of FY2022-23 in seven cities of India, including Bangalore, Chennai, National Capital Region (NCR), Hyderabad, Kolkata, Mumbai Metropolitan Region (MMR), and Pune.

The growth in sales can be attributed to better demand for residential properties across the country. ICRA stated that the reported sales of 149 million square ft (msf) in Q3 FY2022-23 in the top seven cities is the highest quarterly sales recorded in over ten years.

The report stated that the residential real estate markets saw strong demand in Q3 of FY2023, with an 11 percent YoY growth in the area sold. Properties sold in the first nine months of FY23 increased YoY to 412 msf against 307 msf. The shift in the segment-wise composition has also been noted post-pandemic, with a rise in the share of the mid and luxury segments to the sales across the top seven cities.

ICRA noted that the percentage of luxury and mid segments to the sales has increased from 14 percent and 36 percent, respectively, in FY20 to 16 percent and 42 percent in the April-December of FY23.

This shift towards more significant spaces/upgrades and preference for home ownership will continue. The report also stated that the value of the area sold in residential real estate is expected to grow by 8-12 percent in FY23 and a further 14-16 percent in FY24, based on the samples sought from the top 12 listed real estate developers.