Residential sales declined by 1% year-on-year to 1,56,640 units in the first half of 2023, according to Knight Frank (India) Pvt.
Sales registered a fall of 3% during the second quarter of the year. The dip comes even as new launches rose 8% to 1,73,364 units in the first half of the year, according to a report by the property consultancy firm released on Tuesday.
"The growth plateaued in H1 2023 compared to the strong double-digit growth seen in the preceding four half-yearly periods," Knight Frank said. "This can be read as an indicator of market consolidation or saturation."
Knight Frank said the pause in growth was probably transient in nature, given the economy's relative outperformance in the financial year 2024 as well.
"With a promising pipeline of new project launches and high consumer enthusiasm, we anticipate that market traction will continue throughout the remainder of the year," Shishir Baijal, chairperson of Knight Frank India, said.
Sales grew the most in the Hyderabad market at 5% year-on-year, followed by Chennai, Kolkata, and the National Capital Region, with 3% growth each. Sales in Mumbai and Bengaluru dropped by 8% and 2%, respectively.
Prices have risen in the range of 2–10% across all markets. Mumbai saw a price growth of 6%, while it was 5% each in Bengaluru and NCR. Even in sequential terms, prices have either stayed steady or risen across markets during the period, according to the report.
"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," it said.
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