The year 2022 was an exceptional year for Indian residential real estate, but there have been concerns on the possible impact of rising interest rates and property prices derailing the residential momentum.
However, on the demand front, Mumbai registration data for August 2023 (10,902 registrations; +27 per cent YoY) continues to indicate strong momentum across a high ticket size market most susceptible to interest rate hikes/price inflation and also impacted by higher stamp duties, the report said.
The supply situation also continues to be extremely favourable with steadily declining and decadal low unsold inventory, 674msf across top seven cities, as per Propequity.
All markets (Bengaluru, Chennai, MMR, Delhi-NCR, Pune and Kolkata) barring Hyderabad have shown a declining trend in inventory. MMR, Pune and Hyderabad remain some of the best-performing markets with high absorption, and residential demand in the Delhi-NCR region is largely driven by the Rs 15 million+ ticket size or the luxury segment, the report said.
The top seven cities are on track to surpass 2022’s performance.
The year 2022 was exceptional which saw 569msf of absorption (2016-21 average: 343msf; decadal high), and 2023 is also at a similar run rate (387msf in 7MCY23, annualised run rate: 663msf; 17 per cent YoY growth) led by cities like MMR (Mumbai Metropolitan Region), Pune and Hyderabad.
Moreover, launches continued to slightly lag absorption (366msf launched in 7MCY23) resulting in inventory reduction and possible price hikes in 2HFY24, the report said.
–Ajit Weekly News
san/arm
News Credits – I A N S
