South India's Housing Market Booms: 47% Increase in Sales in Hyderabad, Bengaluru, and Chennai

Hyderabad, Bengaluru, and Chennai have witnessed a substantial 47% increase in residential property sales during the July-September quarter, according to data from PropTiger, a leading real estate consultant. This growth comes despite a marginal decline in demand across eight major cities in India. The sales in these three southern cities stood at 38,644 units during the September quarter, up from 26,284 units in the same period last year.

Hyderabad, in particular, saw a 53% surge in housing sales, with 17,658 units sold compared to 11,564 units in the year-ago period. Bengaluru also recorded a 18% increase, with 13,124 units sold, up from 11,160 units. Chennai experienced the most dramatic growth, with housing sales more than doubling to 7,862 units from 3,560 units.

However, the overall trend in India's top-eight primary housing markets (first-sale) saw a 1% decline in sales during July-September. This decline is primarily attributed to lower demand in Mumbai, Pune, and Delhi-NCR. The housing sales across these eight major cities fell to 95,547 units during the third quarter of this year from 96,544 units in the corresponding period of the preceding year.

Among the eight cities, the Mumbai Metropolitan Region (MMR) saw a 22% drop in housing sales to 23,334 units from 30,010 units. Pune experienced a 28% decline to 12,990 units from 18,004 units. Sales of residential properties in Delhi-NCR decreased by 21% to 7,961 units from 10,098 units. Ahmedabad also saw a 5% dip in sales to 8,889 units from 9,352 units. On the other hand, Kolkata witnessed a 33% increase in sales to 3,729 units from 2,796 units.

Aurum PropTech Executive Director Onkar Shetye commented on the outlook, noting that favorable conditions such as stability in interest rates and proactive policy reforms like the recent GST reduction on cement have provided a crucial buffer against rising input costs. These measures have bolstered developer confidence. 'We are optimistic about the upcoming festive quarter, which will serve as a key indicator of consumer demand. However, it will also be a true test of the market's ability to balance this growth momentum with emerging affordability challenges, particularly in the mid and entry-level segments,' he observed.

Aurum PropTech, the parent company of PropTiger, owns and operates a rental marketplace NestAway Technologies, data analytics firm Aurum Analytica, and sales automation platform Sell.do. The company's comprehensive portfolio supports various aspects of the real estate market, from property sales and rentals to data analytics and sales automation.

The robust performance of the housing market in South India is a testament to the region's economic resilience and the growing demand for residential properties. As the market continues to evolve, stakeholders are optimistic about the future, with the upcoming festive season expected to provide further insights into consumer behavior and market trends.