India’s residential sector marked a notable upswing in the first nine months of 2023, recording 1,96,227 unit sales— equivalent to 91 per cent of the total sales in 2022 — hitting the highest since 2008 at approximately 260,000 units, according to JLL’s report.
The growth trajectory is poised to extend into 2024, anticipating sales to reach between 2,90,000 and 3,00,000 units, fueled by robust demand and quality launches.
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Record sales
The report underscores record-breaking quarterly sales, exceeding 65,000 units on average until the third quarter of 2023. Sales during the first nine months of 2023 soared to a record 2,23,905 units, reflecting a y-o-y increase of 21.5 per cent. Projections indicate around 2,80,000 launches by the end of 2023, with a strong continuation into 2024, estimated at 280,000-290,000 units.
Dr. Samantak Das, Chief Economist at JLL India, remains optimistic despite rising home loan interest rates and prices. The domestic housing market retains a positive sentiment, with expectations of surpassing 260,000 units in residential sales and launching 280,000 units in 2023.
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A potential policy rate cut in 2024, contingent on GDP growth and inflation, could further stimulate residential sector growth, with sales expected to be around 290,000 to 300,000 units in 2024.
From January to September 2023, 71 per cent of residential sales were attributed to projects launched between January 2022 and September 2023. Consumers are increasingly drawn to under-construction projects due to developers’ track record in timely execution and delivery.
Premium segment
In the premium segment, the mid-segment price category (₹50 – 75 lakh) dominated 9 months 2023 sales, while the share of premium segments (above ₹1.50 crore) increased from 18 per cent in 9 months 2022 to 22 per cent in 9 months 2023. Delhi NCR and Mumbai led premium segment sales. The luxury segment, priced above ₹3 crore, experienced an 83 per cent surge from 8,013 units in 9 months 2022 to 14,627 in 9 months 2023.
Looking ahead to 2024, Siva Krishnan, Sr. MD, Chennai & Coimbatore, Head of Residential, India, foresees a buoyant residential market with sustained growth in the mid- and premium segments. A robust supply pipeline and new launches by branded developers are expected to maintain the market’s strength, with an estimated range of 2,80,000–2,90,000 units.