Mumbai, Pune witnessed maximum sales traction in 2023

According to the report titled Real Insight Residential – Annual Round-up 2023 by PropTiger.com that is part of REA India, which also owns leading proptech platform Housing.com, India registered double-digit growth in both demand and new supply in the calendar year 2023 with new supply is at an all-time high and sales velocity sustaining momentum.

Mumbai, Pune, and Hyderabad have been the frontrunners in terms of new supply in 2023, taking a combined share of 70 per cent in the overall new launches in 2023.

A total of 5,17,071 units were launched in 2023 as against 4,31,510 units in 2022 registering a sharp growth of 20 per cent YoY. 

The figures include the sales numbers for all four quarters in the calendar year for the top eight cities including Ahmedabad, Bangalore, Chennai, Hyderabad, Kolkata, Delhi-NCR (Gurugram, Noida, Greater Noida, Ghaziabad and Faridabad), MMR (Mumbai, Navi Mumbai & Thane) and Pune.

Stable interest rates are poised to boost home purchases and instill confidence in developers, enabling them to present more attractive offerings in the New Year, extending beyond the festive season. This stability sets a positive tone for the real estate sector as we step into a new phase of growth in 2024.  

Mumbai, Pune and Hyderabad witnessed maximum traction in 2023

The data and insights for 2023 suggest that demand has grown both sequentially and yearly in all four quarters of the year. The western & south markets Mumbai, Pune and Hyderabad continued to show maximum traction, taking a combined share of 67 per cent in overall sales in 2023. Ahmedabad followed by Hyderabad witnessed the highest growth of 51 per cent and 48 per cent YoY in sales as compared to other top cities in 2023.

In 2023, residential demand continued its upcycle and was at its highest since the peak seen in 2013. Units with higher ticket sizes, i.e., INR 1-3 crore took the highest share of 24 per cent in the overall demand. The share of this price bracket has grown significantly from the pre-pandemic quarter levels of 15-17 per cent of 2019. While the hike in property prices and interest rates has slowly begun to outweigh positive homebuyer sentiment to an extent and is expected to have a short-term impact, the overall consumer outlook continues to remain positive.

Housing Sales Annual Chart:

Buyer sentiment driving new launch wave

Buyer sentiment is also propelling a new wave of launches. This year has seen a notable upswing in property launches, signaling robust demand and elevated consumer confidence in a strengthening economy. The majority of units launched fell within the INR 1-3 crore range, comprising 31 percent of the overall new supply in the top-eight cities.

The new launches have consistently remained above the one-lakh mark with the gone year clocking its best year thus far.

New Home Launches Annual Chart: