BUSINESS

CY23 saw record highs in housing sales despite rising costs and interest rates

In 2023, the country’s residential housing market reached unprecedented heights, even with a 15% average rise in property prices and a steep spike in home loan interest rates in the first half of the year.

Housing sales in the top seven cities—Mumbai, Delhi NCR, Bengaluru, Chennai, Pune, Kolkata, Hyderabad—were 4,76,530 units in 2022 compared to 3,64,870 units in 2022, a 31% YoY increase. This information was provided by real estate consultancy Anarock. After almost 3.43 lakh units were sold in the top seven cities in 2014, the housing market reached its most recent high in 2022.

In 2023, the two western cities that dominated the real estate market were Pune and the Mumbai Metropolitan Region (MMR). In 2023, MMR had the greatest sales, with 1,53,870 units (up 40% YoY). Pune came in second, with about 86,680 units (up 52%).

Among the main cities, the National Capital Region (NCR) had the slowest growth rate (at 3%), with sales of 65,625 units in 2023. Housing sales increased by 29% to 63,980 units in Bengaluru, 30% to 61,715 units in Hyderabad, 9% to 23,030 units in Kolkata, and 34% to 21,630 units in Chennai.Anuj Puri, Chairman of ANAROCK Group, said, “While housing price hikes over the year did give rise to demand concerns, the unchanged home loan rates helped keep sales on an even keel.”

“The Indian economy is still doing well, and this has a direct impact on demand for homes. Furthermore, and perhaps most crucially, Grade A developers who are finishing their projects on schedule make up the majority of new supply. Puri said, “This is a powerful barrier for house demand.

According to Anarock, demand in 2024 is expected to be unabated despite an expected 8–10% increase in average costs in the top 7 cities. In 2023, the top seven cities had a yearly rise in housing prices of 10–24%, mostly as a result of rising input costs and robust demand. Hyderabad had the most annual increase of 24 percent.

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