Housing prices have increased 2–10 per cent year-on-year despite sales fell marginally by 1 per cent in India's top eight realty market during the first six months of 2023, real estate consultant Knight Frank India said in a report. 

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Knight Frank India in its bi-annual report, noted that housing sales have dipped 1 per cent to 1,56,640 units in the period from 1,58,705 units in the year-ago period. In contrast, gross office space leasing increased by 3 per cent to 26.1 million square feet from 25.3 million square feet.

Commenting on the findings, Naveen Kumar, director, Navraj Infratech, said that the residential sector has demonstrated resilience and potential for growth, clocking the second-highest sales volume in nearly a decade. Despite slight year-on-year fluctuations, this achievement signifies a positive shift in market dynamics.

"The sustained demand for residential properties, notably the premium residential segment, experienced substantial growth. Looking ahead, we expect the momentum to continue. It will be primarily driven by end-users and investors, particularly in high-end and luxury segments," he said.

Data show that housing and office markets across major cities have remained steady in the first half of this calendar year despite a rise in interest rates on home loans and global headwinds

As per the Knight Frank data, Also, the share of the sale of luxury homes in the overall housing sales has risen. The housing demand is driven by the mid and premium segment while the share of affordable housing in sales has come down.

Rajjath Goel, MD, MRG Group, said that the first half of 2023 has seen a significant increase in sales, indicating a positive momentum for the real estate sector. The sale has been the second highest in the last ten years, showcasing the sector’s promising growth and development. 

Buyers are seeking quality properties that not only fulfil their living or business requirements but also serve as solid investment assets. We are committed to delivering exceptional projects that meet our customers' aspirations and offer them the opportunity to capitalise on the sector's upward trajectory, he said.

"We are excited about the future of the real estate industry and the value it continues to create for both developers and buyers alike," Goel added.

While housing sales in Mumbai fell 8 per cent to  40,798 units in January-June from 44,200 units in the year-ago period, the gross office space leasing in the financial capital rose 9 per cent to 3.2 million square feet from 3 million square feet.
     
In Delhi-NCR, housing sales were up 3 per cent to 30,114 units from 29,101 units. Office space leasing in NCR increased 24 per cent to  5.1 million square feet from 4.1 million square feet. Sales of residential properties in Bengaluru were down 2 per cent to  26,247 units from 26,677 units. But, office leasing in Bengaluru fell 10 per cent to 7 million square feet from 7.7 million square feet.
     
In Pune, housing sales fell 1 per cent to 21,670 units from 21,797 units. Leasing of office space fell 30 per cent to 2.3 million square feet from 3.3 million square feet. Housing sales in Chennai rose 3 per cent to  7,150 units from 6,951 units. Interestingly, the leasing of office space in Chennai jumped over two-fold to 4.5 million square feet from 2.2 million square feet.

In Hyderabad, housing sales increased 5 per cent to 15,355 units from  14,693 units. In contrast, the leasing of office space in Hyderabad declined 8 per cent to 2.9 million square feet from 3.2 million square feet. Sales of residential properties in Kolkata went up 3 per cent to 7,324 units from 7,090 units. But, office demand fell 3 per cent to 0.6 million square feet.
     
In Ahmedabad, housing sales decreased 3 per cent to 7,982 units in the January-June period this year from 8,197 units in the year-ago period. Office space leasing dropped sharply by 59 per cent to 0.5 million square feet in the first half of this year from 1.3 million square feet in the corresponding period of 2022.