The Indian housing market is poised to set new records in 2023, with sales values anticipated to surpass an impressive INR 4.5 lakh crore. The market has shown a substantial 7% upsurge in the first nine months of 2023 compared to the entire sales of 2022, which amounted to approximately INR 3.27 lakh crore.
Demand and Sales Insights
The leading 7 cities have collectively soared in housing sales, reaching nearly INR 3.49 lakh crore in the first three quarters of 2023. This surge indicates a growing preference for high-value properties this year. Forecasts suggest that the ongoing fourth quarter will see sales crossing the INR 1 lakh crore mark, driving the total sales value beyond INR 4.5 lakh crore.
Throughout the initial nine months of 2023, these cities witnessed the sale of over 3.49 lakh units, slightly fewer than the approximately 3.65 lakh units sold in 2022. However, there’s a clear trend showcasing an increased inclination towards premium luxury homes, contributing significantly to the overall surge in sales value.
Regional Performance Highlights
The city-wise distribution of sales values in 9M 2023 highlights Mumbai Metropolitan Region (MMR) as the leader, boasting an approximate sales value of INR 1.64 lakh crore, followed by NCR at around INR 50,188 crore. Conversely, Kolkata marked the lowest overall sales value of approximately INR 9,025 crore, indicative of a higher proportion of affordable housing transactions.
Expert Observations and Growth Projection
Anuj Puri, Chairman of ANAROCK Group, acknowledges the challenge in comparing annual sales values due to increased demand for luxury homes and a substantial rise in average prices, ranging between 8-18% across top cities throughout the year.
Sales Performance: 9M 2023 vs. 9M 2022
A notable 44% surge is witnessed when comparing sales values from January to September in 2022 and 2023, rising from approximately INR 2.43 lakh crore to around INR 3.48 lakh crore in 9M 2023.
Pune exhibited the highest annual increase (96%) in total sales values, escalating from around INR 20,406 crore in 9M 2022 to approximately INR 39,945 crore in 9M 2023. Conversely, Kolkata witnessed a modest 19% rise in overall sales values, reaching approximately INR 9,025 crore in 9M 2023 from around INR 7,612 crore in 9M 2022.
The vibrant growth in the housing market in 2023 reflects a dynamic landscape, showcasing substantial contributions from various cities to the overall surge in housing sales values.
| City | Sales Value 9M2022 (INR Crore) | Sales Value 9M2023 (INR Crore) | % Change |
|---|---|---|---|
| NCR | 38,895 | 50,188 | 29% |
| MMR | 1,16,242 | 1,63,924 | 41% |
| Hyderabad | 25,001 | 35,802 | 43% |
| Bangalore | 27,045 | 38,517 | 42% |
| Pune | 20,406 | 39,945 | 96% |
| Chennai | 7,825 | 11,374 | 45% |
| Kolkata | 7,612 | 9,025 | 19% |
| Total | 2,43,027 | 3,48,776 | 44% |
Also read: Indian Real Estate Market Recovery: Understanding Trends and Opportunities (FY20-23)