Housing Sales In 7 Cities See 31% Growth
Despite hardening property prices and home loan interest rate hikes in early 2023, it has been a superlative year for Indian residential real estate. Latest ANAROCK Research data indicates that housing sales in the top 7 cities have created a new peak in 2023, breaching the previous high of 2022. Approx. 4,76,530 units were sold in 2023 against 3,64,870 units in 2022 across the top 7 cities – rising by 31% Y-o-Y. The last peak in the decade was seen in 2022, after 2014, when approx. 3.43 lakh units were sold in the top 7 cities. MMR witnessed the highest sales of approx. 1,53,870 units in 2023, followed by Pune with approx. 86,680 units. The two western markets together led residential sales in 2023. New launches across the top 7 cities saw a 25% annual rise – from approx. 3,57,640 units in 2022 to approx. 4,45,770 units in 2023. MMR and Pune saw the newest launches, together comprising an nearly 54% share of total new launches in the year. Demand is likely to remain undeterred in 2024, even with average prices likely to appreciate by 8-10% across the top 7 cities. The unchanged home loan rates in the second half of 2023 helped maintain the overall positive consumer sentiment. Among the budget categories, luxury housing demand increased exponentially as homebuyers continue to look for bigger livable spaces post the pandemic. The new luxury supply addition across the top 7 cities in 2023 has jumped up five times when compared to 2018. There is no reason to expect luxury housing demand to taper off in 2024. Residential sales stood at approx. 4,76,530 units in 2023 against 3,64,870 units in 2022 across the top 7 cities – rising yearly by 31%. MMR, Pune, Bengaluru, Hyderabad, and NCR, together accounted for 91% of the sales in the year. On annual basis, housing prices rose by between 10-24% across the top 7 cities, primarily due to increased input costs and strong demand. Hyderabad recorded the highest yearly jump of 24% in average residential prices – from INR 4,620 per sq. ft. in 2022 to nearly INR 5,750 per sq. ft. in 2023. On an annual basis, available inventory declined by 5% in 2023-end across the top 7 cities despite strong new housing supply during the current year. Approx. 6 lakh units are available for sale across the top 7 cities in India. Interestingly, NCR saw the highest decline of 23% in unsold stock on a yearly basis – from approx. 1,23,690 units by 2022-end to approx. 94,800 units as of 2023-end. This is the first time since 2013 that NCR’s unsold stock is less than a lakh unit.
Tags : property prices unsold stock consumer sentiment Indian residential real estate ANAROCK Research data