Housing Sales Hit Fresh Peak In 2023, Top 7 Cities See 31% Yearly Growth: Report
The Indian residential real estate market has defied expectations in 2023, achieving record-breaking housing sales in the top 7 cities, according to the latest data from Anarock Research.
Despite challenges such as escalating property prices and early-year home loan interest rate hikes, approximately 4,76,530 units were sold in 2023, marking a significant 31 per cent year-on-year growth compared to 3,64,870 units in 2022.
According to the report, Mumbai Metropolitan Region (MMR) emerged as the frontrunner with the highest sales, recording approximately 1,53,870 units in 2023, closely followed by Pune with approximately 86,680 units. These two western markets collectively spearheaded residential sales in the year, showcasing the robustness of the real estate sector.
The surge in housing sales was complemented by a 25 per cent annual rise in new launches, with approximately 4,45,770 units introduced in 2023 compared to 3,57,640 units in the previous year. MMR and Pune took the lead in new launches, accounting for nearly 54 per cent of the total new supply in the top 7 cities.
Anuj Puri, Chairman of Anarock Group, commented on the stellar performance of the sector, saying, "2023 has been phenomenal for the Indian housing sector, despite global headwinds, rising domestic property prices, and interest rate hikes over the first half this year. Housing sales in the top 7 cities breached the previous high of 2022, and new launches stayed in step with the current housing demand.”
He added, "It was widely expected that rising property prices and interest rates, along with global market upheavals and uncertainties, would impact residential sales."
The National Capital Region (NCR) deliberately restricted new supply in 2023, introducing approximately 36,735 units despite robust housing sales of 65,625 units. This cautious approach led to a significant 23 per cent annual reduction in unsold inventory stock.
Looking ahead to 2024, Puri anticipates continued demand, projecting an 8-10% average price appreciation across the top 7 cities. The unchanged home loan rates in the second half of 2023 contributed to maintaining positive consumer sentiment.
"While housing price hikes over the year did give rise to demand concerns, the unchanged home loan rates helped keep sales on an even keel," said Puri. "The Indian economy remains bullish, and this directly correlates to residential demand. And, equally importantly, new supply is dominated by Grade A developers who are completing their projects on time. This is a strong housing demand bulwark.”
Luxury housing demand experienced significant growth, with new luxury supply across the top 7 cities in 2023 jumping five times compared to 2018. The trend is expected to persist in 2024 as home buyers continue to seek larger and more comfortable living spaces post-pandemic.
In 2023, the Indian residential real estate market witnessed a robust performance city-wise, as reflected in the absorption of housing units across the top 7 cities. Residential sales reached approximately 4,76,530 units, marking a significant 31 per cent increase from the 3,64,870 units recorded in 2022.
MMR, Pune, Bengaluru, Hyderabad, and NCR emerged as the key contributors, collectively accounting for a substantial 91 per cent of total sales during the year.
Among the cities, MMR took the lead with the highest sales, recording approximately 1,53,870 units in 2023 and experiencing a notable 40 per cent annual increase. Pune followed closely, with sales of around 86,680 units, representing an impressive 52 per cent surge compared to 2022.
NCR recorded sales of approximately 65,625 units in 2023, reflecting a modest 3 per cent growth over the previous year. Bengaluru witnessed a substantial uptick, with around 63,980 units sold, marking a 29 per cent annual increase. Hyderabad, with sales of approximately 61,715 units, recorded a commendable 30 per cent yearly rise.
Kolkata and Chennai also demonstrated positive trends, with sales of around 23,030 units (9 per cent increase) and 21,630 units (34 per cent increase), respectively, showcasing the widespread growth across major metropolitan areas. The cumulative data underscores the overall resilience and upward trajectory of the real estate market in 2023.
