In 2023, the top 7 cities in India experienced a notable surge in housing sales, marking a significant 31% yearly increase compared to 2022. Approximately 476,530 units were sold in these cities, surpassing the previous year’s count of 364,870 units. This surge in sales reached a new pinnacle in the housing market, following the peak witnessed in 2022 and the earlier high of 2014.
Among these cities, the Mumbai Metropolitan Region (MMR) led the sales chart with approximately 153,870 units sold, closely followed by Pune, which saw around 86,680 units changing hands.
In tandem with the rising sales trend, new property launches also increased by 25% year-on-year, reaching about 445,770 units in 2023 across the top 7 cities. MMR and Pune accounted for the majority, contributing nearly 54% of the total new launches in the market.
Anuj Puri, Chairman of the ANAROCK Group, expressed satisfaction with the phenomenal performance of the housing sector in 2023. Despite global challenges, including escalating property prices and initial interest rate hikes, the market exceeded expectations. Notably, the fourth quarter of 2023 sustained the robust momentum seen throughout the year, witnessing over 127,370 units sold.
Interestingly, the National Capital Region (NCR) deliberately curtailed its new supply, offering approximately 36,735 units despite recording strong sales of about 65,625 units. This strategic approach resulted in a substantial 23% annual reduction in unsold inventory.
Looking ahead to 2024, the demand for housing is projected to remain strong, despite an expected 8-10% rise in average prices across the top 7 cities. The stable home loan rates in the latter half of 2023 contributed to maintaining a positive consumer sentiment, offsetting concerns raised by housing price hikes during the year.
Luxury housing witnessed a significant surge in demand as buyers sought more spacious accommodations post-pandemic. The supply of luxury housing across the top 7 cities in 2023 increased fivefold compared to 2018, indicating sustained demand for such properties in the coming year.
Housing Sales Overview City-wise
| City | 2023 | 2022 | % Change (2022 vs 2023) |
|---|---|---|---|
| NCR | 65,625 | 63,710 | 3% |
| MMR | 1,53,870 | 1,09,730 | 40% |
| Bengaluru | 63,980 | 49,480 | 29% |
| Pune | 86,680 | 57,145 | 52% |
| Hyderabad | 61,715 | 47,485 | 30% |
| Chennai | 21,630 | 16,100 | 34% |
| Kolkata | 23,030 | 21,220 | 9% |
| Total | 4,76,530 | 3,64,870 | 31% |
New Launches Overview – City-wise
| City | 2023 | 2022 | % Change (2022 vs 2023) |
|---|---|---|---|
| NCR | 36,735 | 25,360 | 45% |
| MMR | 1,57,700 | 1,24,650 | 27% |
| Bengaluru | 54,435 | 49,195 | 11% |
| Pune | 83,625 | 64,340 | 30% |
| Hyderabad | 76,345 | 68,010 | 12% |
| Chennai | 20,140 | 9,995 | 102% |
| Kolkata | 16,790 | 16,090 | 4% |
| Total | 4,45,770 | 3,57,640 | 25% |
Price Movement
| City | 2023 | 2022 | % Change (2022 vs 2023) |
|---|---|---|---|
| NCR | 5,800 | 5,025 | 15% |
| MMR | 13,700 | 11,890 | 15% |
| Bengaluru | 6,550 | 5,570 | 18% |
| Pune | 6,750 | 6,000 | 13% |
| Hyderabad | 5,750 | 4,620 | 24% |
| Chennai | 5,950 | 5,315 | 12% |
| Kolkata | 5,150 | 4,700 | 10% |
| Total | 7,080 | 6,150 | 15% |
At the close of 2023, despite a substantial increase in new housing supply during the year, the overall available inventory witnessed a 5% decline across the top 7 cities. Approximately 600,000 units are currently available for sale in these cities. Notably, the National Capital Region (NCR) experienced the most significant reduction, with a remarkable 23% decrease in unsold stock from approximately 123,690 units at the end of 2022 to about 94,800 units by the end of 2023. This marks the first instance since 2013 where NCR’s unsold stock has dropped below the hundred-thousand unit mark.
Also read: High-Value Real Estate Deals Dominate 2023 Across Mumbai, Delhi-NCR, and Bengaluru