MMR witnesses highest housing sale in 2023, followed by Pune: Report

Mumbai Metropolitan Region (MMR) emerged as the leader in housing sales for the year 2023, followed by Pune, according to the latest report from ANAROCK Research.

Despite the challenges posed by escalating property prices and increases in home loan interest rates in the early months of 2023, the Indian residential real estate market experienced an exceptional year. ANAROCK Research data reveals that housing sales across the top 7 cities reached a new pinnacle in 2023, exceeding the previous high set in 2022.

In 2023, approximately 476,530 units were sold across the top 7 cities, marking a remarkable 31% year-on-year increase from the 364,870 units sold in 2022. This surge in sales is notably higher than the last peak in 2014, with approximately 343,000 units sold in the top 7 cities.

MMR led the sales with around 153,870 units in 2023, followed closely by Pune with approximately 86,680 units. These two western markets collectively dominated residential sales for the year.

New launches across the top 7 cities witnessed a 25% annual rise, jumping from around 357,640 units in 2022 to approximately 445,770 units in 2023. MMR and Pune stood out with the highest number of new launches, comprising nearly 54% of the total new supply in the year.

Anuj Puri, Chairman of ANAROCK Group, remarked, “Despite global uncertainties, rising domestic property prices, and interest rate hikes, 2023 has proven to be a phenomenal year for the Indian housing sector. The resilience of the market has defied expectations, with Q4 2023 maintaining strong momentum.”

Looking ahead to 2024, Puri expressed confidence in sustained demand, even with an anticipated 8-10% average price appreciation across the top 7 cities. The unchanged home loan rates in the latter half of 2023 contributed to maintaining a positive consumer sentiment.

Puri stated, “While concerns about housing price hikes persisted throughout the year, stable home loan rates played a crucial role in sustaining sales. The robust demand is further supported by a stable Indian economy and timely project completions by Grade A developers.”

Luxury housing demand witnessed exponential growth in 2023, with demand for larger living spaces post-pandemic. The new luxury supply across the top 7 cities in 2023 was five times higher than in 2018, and this trend is expected to continue into 2024.

In summary, residential sales in 2023 across the top 7 cities, led by MMR, Pune, Bengaluru, Hyderabad, and NCR, reached approximately 476,530 units, reflecting a significant yearly increase of 31%. The market’s resilience, coupled with strong new launches, underscores the optimistic outlook for the Indian housing sector.