Huge sales of houses despite high interest rates.
74,486 units were sold in the January-March quarter.
Realty is going strong despite high home loan rates. With stable economic conditions, positive buyer sentiment, and good supply from leading developers, the Indian real estate market is reaching new heights. On the one hand, although property prices are gradually increasing and interest rates on home loans are high, house sales have recorded an all-time high in the January–March quarter of this year. 74,486 units were sold in seven major cities in the country. JLL India said that 75,591 units were sold in the December quarter of 2023. In the new quarter, house sales were almost at the same level. Sales in the latest quarter have laid a solid foundation for the residential real estate market this year. In this context, it is expected that the sales of houses this year will increase more than last year. It explained that Mumbai, Bengaluru, and Pune together accounted for 64 percent of the total house sales in the seven cities. 47,388 houses were sold in those three cities in this quarter.
In Bengaluru and Pune, house sales were high in the Rs 50 lakh to Rs 75 lakh segment. In Mumbai, houses were sold mostly in the Rs 1.5 crore to Rs 3 crore segment. Compared to the first quarter of 2022, in the current March quarter, the sales of houses worth more than Rs. 3 crore have increased from 5 percent to 11 percent. Overall, the sales of houses priced between Rs. 50 lakh and Rs. 75 lakh are high in seven major cities of the country.
*Real estate experts state that there is a continued strong demand for premium and middle-income housing. It is said that due to high interest rates, there has been a decline in the sales of affordable houses. However, if interest rates come down by the end of this year, this segment will also pick up. Currently, interest rates on home loans start at 9 percent. Meanwhile, if residential sales continue like this, the JLL report predicts that 3 lakh to 3.15 lakh units will be sold in 2024. There has been a significant change in the sales of various segments of the residential market. Buyers seem to be looking more towards luxury. According to this, the developers will have to undertake the projects,’ said Sivakrishnan, Head of Residential Services, JLL India. On the other hand, house prices in the seven major cities of the country have increased by 3 percent to 15 percent in the March quarter of this year compared to the March quarter of last year. House prices have increased by 15 percent in Delhi and Bengaluru. The March quarter saw a one percent increase in the inventory of unsold homes. Mumbai, Bengaluru, and Hyderabad together account for 66 percent of the inventory of unsold houses.
