Source: Business Insider (https://bit.ly/4bzunGu)

The top eight residential markets in the country have continued to display robust growth, in the period Q3 2023 (July-September). During this period, there was a strong surge in demand, with sales of 82,612 residential units, marking a 12% year-on-year (Y-oY) growth. In terms of volume, Q3 2023 achieved the highest quarterly sales in six years, as per Knight Frank India’s latest report on the Indian real estate market.

The mid and high-end categories of residential properties experienced increased sales momentum in this period. Properties priced over ₹1 core saw a 39% Y-o-Y increase, while the mid-segment, ranging from ₹50 lakh to ₹1 crore, witnessed a 14% year-on-year rise.

Developers have responded to this surging demand by launching new projects, with 85,549 new residential units introduced in Q3 2023, representing a 23% year-on-year increase. Prices in various markets across India also rose in line with the growing demand.

Says Shishir Baijal, chairman and managing Director, Knight Frank India, “Residential sales continue to gain momentum, reaching multi-year highs. Although inventory levels have seen a significant rise due to developers launching projects to cater to this robust demand, the overall market health is improving, with strong sales velocity. Elevated interest rates and prices have had little impact on higher-ticket-size homebuyers, but the affordable segment has been severely affected, necessitating further interventions to stimulate demand and enhance development viability.”