Mumbai, India – The Mumbai Metropolitan Region (MMR) emerged as the frontrunner in housing sales for the year 2023, surpassing other major cities, with Pune closely following suit, according to the latest report from ANAROCK Research. Despite challenges posed by rising property prices and increased home loan interest rates in the early months of 2023, the Indian residential real estate market experienced an exceptional year, reaching new heights in terms of sales.
ANAROCK Research data reveals that housing sales across the top 7 cities in India reached an unprecedented level in 2023, exceeding the previous high set in 2022. Approximately 476,530 units were sold in 2023, marking a remarkable 31% year-on-year increase from the 364,870 units sold in 2022.
MMR led the sales with around 153,870 units in 2023, followed closely by Pune with approximately 86,680 units. These two western markets collectively dominated residential sales for the year, contributing significantly to the overall surge.
New launches in the top 7 cities witnessed a 25% annual rise, jumping from around 357,640 units in 2022 to approximately 445,770 units in 2023. MMR and Pune stood out with the highest number of new launches, comprising nearly 54% of the total new supply in the year.
Anuj Puri, Chairman of ANAROCK Group, expressed optimism about sustained demand in 2024, even with an anticipated 8-10% average price appreciation across the top 7 cities. The stability in home loan rates in the latter half of 2023 played a crucial role in maintaining positive consumer sentiment.
Puri stated, “While concerns about housing price hikes persisted throughout the year, stable home loan rates played a crucial role in sustaining sales. The robust demand is further supported by a stable Indian economy and timely project completions by Grade A developers.”
Luxury housing demand witnessed exponential growth in 2023, reflecting a trend toward larger living spaces post-pandemic. The new luxury supply across the top 7 cities in 2023 was five times higher than in 2018, and this trend is expected to continue into 2024.
In summary, residential sales in 2023 across the top 7 cities, led by MMR and Pune, reached approximately 476,530 units, reflecting a significant yearly increase of 31%. The market’s resilience, coupled with strong new launches, underscores the optimistic outlook for the Indian housing sector.
