Housing sales up by 31% in 2023 in top 7 Indian cities; Mumbai, Pune lead the way

Source: Business Today

Housing sales in the top seven cities in India -- including New Delhi, Mumbai, Bengaluru, Pune, Hyderabad, Chennai, Kolkata -- witnessed a year-on-year surge of 31 per cent to an all-time high 4,76,530 units so far in 2023, according to real estate consultant ANAROCK.

The growth came even as residential prices collectively rose by about 15 per cent annually in the top seven cities, with Hyderabad witnessing the highest rise at 24 per cent.

"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,” Anuj Puri, Chairman, ANAROCK Group, said.

Puri said it was widely expected that rising property prices and interest rates, along with global market uncertainties, would impact residential sales, but high demand sustained.

About 4,76,530 units were sold in 2023 against 3,64,870 units in 2022 across the top seven cities – rising by 31 per cent year-on-year. The last peak in the decade was seen in 2022, after 2014, when approximately 3.43 lakh units were sold in the top seven cities.

The data revealed that Mumbai Metropolitan Region (MMR) saw the highest sales of about 1,53,870 units in 2023 (against 1,09,730 units in 2022), followed by Pune with 86,680 units (against 57,145 units in 2022). The two western markets together led residential sales in 2023.

In Delhi-NCR, sales grew only 3 per cent to 65,625 units from 63,710 units. Housing sales in Bengaluru went up 29 per cent to 63,980 units from 49,480 units. Hyderabad witnessed a 30 per cent growth in sales to 61,715 units from 47,485 units. Sales in Kolkata rose 9 per cent to 23,030 units from 21,220 units. In Chennai, sales increased 34 per cent this year to 21,630 units from 16,100 units in the last calendar year.

Meanwhile, on the supply side, ANAROCK said that new launches across the top seven cities saw a 25 per cent annual rise – from about 3,57,640 units in 2022 to approximately 4,45,770 units in 2023. MMR and Pune saw the most new launches, together comprising an nearly 54 per cent share of total new launches in the year.

On an annual basis, housing prices rose by between 10-24 per cent across the top seven cities, primarily due to increased input costs and strong demand. Hyderabad recorded the highest yearly jump of 24 per cent in average residential prices – from Rs 4,620 per sq ft in 2022 to nearly Rs 5,750 per sq ft in 2023.