NEW DELHI: Residential housing market in the country scaled new highs in the calendar year 2023 despite an average increase in property prices by 15% and a sharp jump in home loan interest rates during the first half of the year.
As per the latest data shared by real estate consultant Anarock, housing sales in top seven cities- Mumbai, Delhi NCR, Bengaluru, Chennai, Pune, Kolkata and Hyderabad - stood at 4,76,530 units as against 3,64,870 units in 2022– rising by 31% Y-o-Y. The last peak in the housing market was seen in 2022, after 2014, when approximately 3.43 lakh units were sold in the top seven cities.
Two western cities– Mumbai Metropolitan Region (MMR) and Pune – dominated the real estate market in 2023. MMR witnessed the highest sales of 1,53,870 units (up 40% YoY) in 2023, followed by Pune with approx 86,680 units (up 52%).
The National Capital Region (NCR) registered the slowest growth (at 3%) among major cities as it recorded sales of 65,625 units in 2023. Housing sales in Bengaluru grew by 29% to 63,980 units, in Hyderabad by 30% to 61,715 units, in Kolkata by 9% to 23,030 units and in Chennai by 34% to 21,630 units.“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 Anuj Puri, Chairman - ANAROCK Group.
“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,” added Puri.
Anarock said demand will likely remain undeterred in 2024, even with average prices likely to appreciate by 8-10% across the top 7 cities. On annual basis, housing prices rose between 10-24% across top seven cities in 2023, primarily due to increased input costs and strong demand. Hyderabad recorded the highest yearly jump of 24%.