India's home sales in 2023 to be the highest since 2008: Report

India is poised to register the highest home sales in 2023 after 2008, revealed a new report by real estate consultancy JLL India. As per the report, in the current calendar year, India is expected to record 260,000 units of home sales - which will be the highest since 2008.

Home Sales in 2023

In its "2023: A Year in Review" report, JLL said that home sales in the first 9 months of 2023 reached 196,227 units, 91% of the total sales in 2022.

"It is interesting to note that residential sales broke all records with average quarterly sales of over 65,000 units till the third quarter of 2023," the report mentioned.

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Mid-segment homes in the range of Rs 50-75 lakh saw the highest number of sales in which 45,592 units were sold in the first 9 months of 2023. Premium homes at the range of Rs 1.5 to 3 crore saw a sales of 42,919 units which was followed by sales in low-segment homes that cost below Rs 50 lakh. A total of 38,307 of these homes were sold in 2023.

The share of premium segment rose from 18% in the first 9 months of 2022 to 22% during the same period in 2023. The luxury segment (above Rs 3 crore) also witnessed an 83% surge in sales from 8,013 units in the first nine months of 2022 to 14,627 units in the first nine months of 2023.

"With homebuyers upgrading to bigger sized homes, developers are launching such projects taking cognizance of this demand trend," the consultancy said.

Along with the rise in sales, there also was a significant increase in new launches in 2023. A total of 2,23,905 units were launched which is 21.5% higher than in 2022.

"It is anticipated that by the end of 2023, we can expect around 280,000 launches. Furthermore, the robust supply pipeline from reputable developers indicates that the launches will continue to be strong in 2024, with an estimated range of 280,000-290,000 units," the report said

Home sales prediction for 2024

The report has also forecasted that in 2024, home sales are expected to be in the range of 290,000-300,000 units.

"There is a possibility of a policy rate cut in 2024 provided the GDP growth and inflation support such a stance of RBI. In that scenario, we would likely see a further growth trajectory in the residential sector," said Samantak Das, chief economist and head of research at JLL India.

"Also, the sales guidance shared by various established developers reflect robust sales which are expected to get a healthy response from the buyers," he added.