The Indian residential real estate market continued to grow in FY23, with both sales volume and value reaching new records. The top-seven cities, namely, Delhi national capital region (Delhi-NCR), Mumbai, Kolkata, Chennai, Pune, Bengaluru, and Hyderabad saw a total of 3.79 lakh units sold in FY23, up 36 per cent from the previous year. The value of these sales was Rs. 3.47 lakh crore, up 48 per cent from FY22, according to a report by Anarock Group.
The Mumbai metropolitan region (MMR) led the way in terms of both sales volume and value, with 30 per cent of the total units sold during the fiscal and 48 per cent of the total value of sales. Pune came in second with 17 per cent in terms of number of units sold. In terms of value of properties sold, Delhi NCR came in second with 15 per cent sales.
Rise In Sales
The rise in sales volume and price increments have driven phenomenal growth in the value of the units sold, the report said.
All seven cities recorded growth in the total value of housing sold during the year, with Pune recording the highest growth at 77 per cent. Hyderabad and Bengaluru were the other two cities that recorded growth close to 50 per cent.
There has also been a significant rise in luxury housing (units priced above Rs 1.5 crore) sales across these cities.
Luxury real estate has especially picked up after the pandemic caused homebuyers to reimagine their housing choices. Apart from larger space, there is now an increased demand for technologically equipped homes that tick all the boxes in terms of a convenience-driven lifestyle and pride of ownership.
Says Anuj Puri, chairman, Anarock Group: “The uptrend in luxury housing is the result of overall improved homeownership sentiment, improved earning potential, and the desire for homes that are future-proofed in terms of size, lifestyle quotient, and resale value growth. People are willing to pay for these factors, as has been amply vouchsafed by recent record runs on luxury projects by leading developers.”
MMR, Delhi-NCR, and Bengaluru have led from the front in terms of luxury housing uptake, but Pune is another city to watch out for. While it registered the highest growth in value terms, it also recorded a 9 per cent share of the luxury segment, from a negligible share in earlier years, the report said.
According to another Anarock report released in April 2023, the Indian housing market had a strong first quarter of 2023, with increased sales, new launches, and price increases.
However, short-term risks are emerging due to global economic uncertainties and recent layoffs by large and small corporations, the report said.
These factors could impact housing demand in the next two quarters. As such, some homebuyers may adopt a wait-and-watch approach until they secure stable employment.
Anarock said it expected that the housing market would bounce back after the temporary turbulence, with deferred homebuyers returning to the market by FY25. Average property prices are projected to grow by 8-12 per cent across the top-seven cities, and new launches will be dominated by large and listed developers.