H1 witnessed second highest half-yearly residential sales volume in 9.5 years: Knight Frank India
The residential market stepped into 2023 on a relatively stable footing with the first half of the year registering sales of 0.16 mn units, 1% lower in YoY terms. While this is the second highest sales volume in almost 10 years, the YoY growth has plateaued in H1 2023 compared to the strong double-digit growth seen in the preceding four half yearly periods, according to Knight Frank India’s flagship half-yearly report — ‘India Real Estate H1 2023’ — which tracks the ongoing developments that have impacted the residential and office segments across the top 8 cities.
As per the report, the residential sector has recorded a sale of 156,640 units in H1 2023, marginally lower by 1% YoY (January – June 2023) but 1.7% higher compared to H2 2022. While low-interest rates and comparatively low residential prices sparked the revival in demand, the residential sales level sustained even as interest rates rose.
The new launches stood at 1,73,364 units, up 8% YoY. H1 saw a growth for the premium residential segment, as it witnessed a rise across cities in H1 2023. The demand for mid-segment homes eclipsed the affordable segment in H1. While the market is carrying more inventory, the consistently high sales volumes in H1 2023 have pushed down the Quarters to Sell (QTS) level from 7.8 to 6.7 quarters during this period.
H1 2023 posted sales of 1,56,640 units, 1% lower YoY. The demand remained consistently high in H1 2023 even as annual growth slipped marginally. The sales volume was the second highest in almost 10 (9.5) years. The industry continues to consolidate with residential developments steadily shifting into the hands of stronger developers who have been able to weather the economic storm created by the pandemic
The volume
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