The real estate sales in India decline slightly during the July to September quarter of 2023, showing signs of shifting market trends. According to data from PropTiger, a well-known real estate consulting firm, sales in the top eight housing markets fell by 1% compared to last year. A total of 95,547 homes were sold this quarter, down from 96,544 units in the same period of 2022. The drop is mainly due to weaker demand in Mumbai, Pune, and the Delhi-NCR region.
Despite the fall in unit sales, the total revenue from property sales increased by 14%, reaching ₹1.52 lakh crore. This suggests that property values are rising even though fewer homes are being sold. Onkar Shetye, Executive Director of Aurum PropTech Ltd, explained that the market is shifting from a “volume-led recovery” to a “value-driven growth” phase. This means buyers are focusing more on quality properties and long-term investment value rather than just numbers.
The premium housing segment continues to perform well, driven by positive buyer sentiment and strong economic fundamentals. However, some key markets reported sharp declines. The Mumbai Metropolitan Region (MMR) saw sales drop by 22% to 23,334 homes, compared to 30,010 last year. Pune recorded a 28% decrease to 12,990 units, and Delhi-NCR dropped by 21% to 7,961 homes. Ahmedabad also saw a small decline of 5%, with 8,889 homes sold.
On the other hand, several cities showed significant growth. Bengaluru reported an 18% increase, selling 13,124 homes. Chennai more than doubled its sales to 7,862 units. Hyderabad recorded a massive 53% surge to 17,658 homes, while Kolkata sales grew 33% to 3,729 units. These cities benefited from expanding job opportunities, strong infrastructure growth, and increased housing demand.
Looking ahead, Shetye highlighted a few positive signs for the sector. Stable interest rates are expected to support homebuyers, while a recent GST reduction on cement will help developers cut construction costs and improve profitability. Additionally, the festive season could further boost demand, as buyers often prefer to invest in property during this period.
However, he also warned that affordability challenges could pose risks, especially in the mid-range and budget segments. Balancing growth with affordability will be a key test for developers in the coming months. Another notable trend is the 5% drop in new housing supply, with only 87,179 units launched in the top eight cities. A limited supply could put upward pressure on prices if demand rises during the festive quarter.
Industry experts believe that the real estate sector is entering a more mature phase. Instead of chasing high sales volumes, developers are focusing on delivering better-quality projects, enhancing amenities, and selecting locations with strong long-term potential. Buyers, too, are becoming more selective and investing in properties that promise higher returns or lifestyle benefits.
In conclusion, the real estate sales in India decline slightly, reflecting a changing market that is focusing more on value than volume. With stable interest rates, policy support, and the festive season approaching, experts expect steady growth ahead. Still, affordability and limited supply will continue to shape the market’s direction in the near future.
