According to real estate consultancy firm Anarock data, housing sales in India’s top seven cities have reached a new peak in 2023, surpassing the previous high recorded in 2022. A total of 4.76 lakh units were sold in 2023, marking a 31 percent increase. The last peak within the decade occurred in 2022, following 2014, with approximately 3.43 lakh units sold in the top seven cities, including Delhi-National Capital Region, Mumbai region, Bengaluru, Pune, Hyderabad, Chennai, and Kolkata.
Anarock’s data reveals that the greater Mumbai region experienced the highest sales, reaching approximately 1.53 lakh units in 2023, followed by Pune with about 86,680 units.
In terms of budget categories, luxury housing demand saw a significant rise as homebuyers continued seeking larger living spaces post the pandemic. Anarock noted a fivefold increase in new luxury supply across the top seven cities in 2023 compared to 2018, asserting that there is no indication of a slowdown in luxury housing demand in 2024.
“While the first two years after the pandemic broke out were more about the revival of real estate fortunes, this year actually saw the property market flourish with increasing numbers of project launches, sales, and subscription rates especially if the luxury real estate market is concerned. The National Capital Region, more specifically Gurugram, has witnessed an upshift with a large section of property buyers desirous of investing in luxury and uber-luxury properties with upscaling amenities. The demand for bigger homes like 3 and 4-bedroom apartments is on a meteoric rise, especially amongst the millennials and Gen-Z real estate consumers who are showing a readiness to invest in high-end properties comprising bigger homes, given they match their vision, ideals, and standards,” Vikas Garg, Joint Managing Director, Ganga Realty said.
Beyond luxury experts also feel that more and more buyers are also moving towards greener property options. “While we have observed luxury properties becoming a staple demand in property markets, it is also a positive indicator that a great chunk of homebuyers are preferring to invest in luxury and ultra-luxury projects that comply with green norms. They are also showing an inclination to buy 3,4,5 BHK homes as people want spacious homes for permanent settlement, shifting with families, leading a good-quality life, and greater room space for the establishment of workstations due to Work-From-Home models,” Neeraj K Mishra, Executive Director, Ganga Realty said.”Rapid Infrastructural growth also deserves credit for burgeoning housing demand. Major expressway and highway projects like the Delhi-Mumbai Expressway (Sohna-Dausa stretch) are strengthening interstate connectivity and bolstering real estate demand in nearby and adjacent locations. In a nutshell, real estate is off on a strong foothold in 2023 and will most expectedly continue its golden run in 2024,” Vikas Garg added.The demand for homes and property is not limited to big cities. Small tier 2 and tier 3 cities are also witnessing boom in real estate sector. “While there is no doubt that 2023 has been a good year for the real estate sector, it is also fair to say the metro cities, Tier 2, and 3 cities have all seen great absorption rates in the case of the diverse range of property classifications. Gurugram underlines a euphoric increase in demand for luxurious independent floors. Tier 2 cities like Alwar, Neemrana, and Bhiwadi have seen a persistently increasing demand. Supported by brisk infrastructural growth and massive upgrade in quality of life index, Tier 2 and 3 cities will see rapid demand in 2024,” Saransh Trehan, Managing Director, Trehan Group said.
A Q3 2023 report by Knight Frank adds to this optimistic outlook, with 63 percent of stakeholders anticipating an increase in residential launches over the next six months, further contributing to the market’s momentum in 2024.
