Luxury Apartments Witness Record Sales Growth in H1 2023, JLL Report Highlights

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    In the first half of 2023, India’s real estate market witnessed a significant surge, with a total of 126,500 housing units sold, according to a recent report by international real estate consulting firm JLL. This represents a year-on-year increase of 21 percent, fueled by a resilient domestic economy and a stable job environment.

    Leading the sales were Mumbai and Bengaluru, which accounted for 21 percent each of the total sales, followed closely by Pune at 20 percent. These cities emerged as the biggest markets, collectively contributing 42 percent of the H1 2023 sales. The mid and premium segments were the primary drivers of sales, capturing 24 percent and 21 percent shares, respectively.

    The luxury segment stood out, experiencing the highest sales growth in H1 2023. Sales of luxury apartments saw a remarkable 67 percent year-on-year increase, with their market share rising from 14 percent in H1 2022 to 19 percent in H1 2023. The mid-segment, although still dominant, saw a decline in market share from 28 percent in H1 2022 to 24 percent in the current first half. Affordable apartments priced below Rs 50 lakh also witnessed a decline in market share, dropping from 24 percent in H1 2022 to 19 percent in H1 2023.

    The report highlighted that most residential sales were driven by projects launched within the last 18 months. However, older inventory, nearing completion, also garnered attention. Approximately 12 percent of the sales in H1 2023 were constituted by projects launched before 2018.

    While completed projects contributed to only 13 percent of the half-yearly sales in 2023, the study noted a decline in unsold inventory in quality projects and a limited availability of ready-to-move options. However, new launches outpaced sales, resulting in a 2 percent increase in unsold inventory across the top seven cities of India on a quarter-on-quarter basis. Mumbai, Hyderabad, and Bengaluru accounted for 63 percent of the unsold stock.

    The report also highlighted a steady increase in residential prices across major cities, with Bengaluru witnessing the highest rise at around 11-12 percent year-on-year. Kolkata, with improving buyer sentiment, experienced a slower increase in prices, up by 2 percent year-on-year.

    During H1 2023, the Indian real estate market saw 151,000 units of new residential launches, marking a 24 percent year-on-year increase. The second quarter alone witnessed over 76,000 units being launched, with Mumbai (24 percent), Pune (22 percent), and Hyderabad (19 percent) being the most active cities in terms of new launches.

    Industry experts expressed optimism about the future of the residential market, anticipating sustained growth in the second half of the year, driven by the upcoming festival season and positive customer sentiment. The alignment of residential demand and supply is expected to contribute to this upward trend.

    Siva Krishnan, Senior Managing Director and Head of Residential, India, at JLL, stated, “With the upcoming festival season and positive customer sentiment, we anticipate the residential market to reach new heights in the second half (H2) of the year. The alignment of residential demand and supply is expected to pave the way for sustained growth in this segment.”

    Samantak Das, Chief Economist and Head of Research & REIS, India, at JLL, emphasized the increasing risk appetite of consumers, attributing it to the influx of supply from branded developers and their ability to deliver quality products within stipulated timelines.

    As the Indian real estate market continues to thrive, propelled by the luxury segment and positive market conditions, the future holds promising prospects for both developers and homebuyers.

    Also Read:- Delhi-NCR Dominates Real Estate Growth: Highest Rise in Housing Prices Among Top Indian Cities

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