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Housing market 2023 sales performance likely to be at 15-year best: Report


India’s residential real estate sector has continued to break new records this year and is expected to register the highest sales since 2008 at around 260,000 units. The growth momentum currently seen is expected to be carried forward in 2024 as well, said a JLL India study.

Residential sales in the first nine months of 2023 reached 196,227 units, which is 91% of the total sales in 2022. Interestingly, residential sales broke all records with average quarterly sales of over 65,000 units till the third quarter of 2023. In 2024, residential sales are expected to be around 290,000 to 300,000 units on the back of robust demand and quality launches.

In the first nine months of the year, launches reached a record of 223,905 units, showing a healthy year-on-year growth of 21.5%. It is anticipated that by the end of 2023, the launches are expected to be around 280,000 units.

Furthermore, the robust supply pipeline from established developers indicates that the launches will continue to be strong in 2024, with an estimated range of 280,000-290,000 units.

“Despite the increase in home loan interest rates and rising prices, the overall sentiment in the domestic housing market remains positive, with homebuyers maintaining an upbeat attitude towards purchasing homes,” said Samantak Das, Chief Economist and Head of Research and REIS, India, JLL.

According to him, the policy rates are likely to be reduced in 2024 provided the GDP growth and inflation support such a stance of the central bank. In that scenario, the growth trajectory in the residential sector is likely to move further.“We expect the residential market to remain buoyant and ride the next wave of growth and expansion with a good response from buyers in mid- and premium segments,” said Siva Krishnan, Sr. MD – Chennai & Coimbatore, Head of Residential, India.According to him, demand for residential apartments will be backed by a robust supply pipeline with many branded developers having announced new launches and their entry into newer markets

Between January and September 2023, around 71% of residential sales were recorded in projects that were launched during a year ago period.

Attracted by quality products launched by developers, the risk appetite among consumers is on the rise for under-construction projects as these projects are getting executed and delivered within stipulated timelines.


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