Indian residential market rises with 31% growth in home sales in 2023
Indian residential real estate market witnessed a new high with superlative growth in 2023 as compared to last year as leading cities saw higher sales of housing properties.
Savings rate down but healthy at 30%; uptick in housing loans drives credit growth
Bengaluru, December 28: Indian residential real estate market witnessed a new high with superlative growth in 2023 as compared to last year as leading cities saw higher sales of housing properties.
This happened despite hardening property prices and high home loan rates during the initial quarters of this year.
According to real estate consultancy firm, ANAROCK, housing sales in the top seven cities have created a new peak in 2023, breaching the previous high of 2022. Around 4,76,530 units were sold in 2023 against 3,64,870 units in 2022 across the top seven cities, which was a rise of 31 per cent year-on-year basis.
Among cities, Mumbai Metropolitan Region (MMR) registered the highest sales of around 1,53,870 units in 2023, followed by Pune with about 86,680 units. The two western markets together led residential sales in 2023.
Among southern cities, Hyderabad saw the sale of 61,715 units, which was 30 per cent higher than 47,485 units sold in 2022. Bengaluru witnessed sale of 63,980 units, which was 29 per cent higher than the previous year.
"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. Housing sales in the top 7 cities breached the previous high of 2022, and new launches stayed in step with the current housing demand,”Anuj Puri, Chairman of ANAROCK Group said.
“It was widely expected that rising property prices and interest rates, along with global market upheavals and uncertainties, would impact residential sales. The market put paid to these predictions. Q4 of 2023 maintained the strong momentum set during the entire year with more than 1,27,370 units sold in the period,” he added.
According to the real estate consultancy firm, demand is likely to remain undeterred in 2024, despite the expectations of average price hike of 8-10 per cent across the top 7 cities during this period.
