NEW DELHI: Despite soaring interest rates and geopolitical uncertainty, demand for housing units in India remained robust throughout the calendar year 2023. Industry sources estimate total housing sales across the country’s top 7 cities this year to fall between 4.70-4.80 lakh units, a new record for the sector.
According to data issued by real estate consultant Anarock, more than 3.49 lakh units were sold across the top 7 cities in the first nine months of CY2023, against 3.65 lakh units in the entire 2022. Anarock has estimated that the total value of homes to have found buyers in 2023 will cross the Rs 4.5 lakh crore mark - 38% higher than in 2022.
“It won’t be a surprise if total sales may fall in close vicinity of 5 lakh units as buying momentum during the festive season was strong,” said CEO of a Bengaluru-based developer requesting not to be named. He added that the premium segment (housing units priced above Rs 1.5 crore), especially in the Mumbai belt dominated this year’s real estate market as buyers after Covid-19 pandemic, are seeking ‘extra’ space for themselves.
Real estate consultant CBRE said that the premium and luxury segment has emerged as a sought-after investment avenue, particularly for HNIs and NRIs seeking to safeguard their investments amid global macroeconomic uncertainties.
“Sales of only luxury units (priced upwards of Rs 4 cr) during the Jan-Sep’23 grew by more than 75% when compared to the same period last year. This demand is supported by quality supply being launched by leading developers, who are launching projects across configurations such as independent floors, villas, and condominiums,” said CBRE in a note on Monday. The momentum in residential sales was sustained even as the RBI increased the repo rate upwards by 250 bps between May 2022 and February 2023.