Housing sector on track to surpass Rs 4.5 lakh crore sales in 2023

The Indian housing market is on track to break records in 2023, with sales projected to surpass Rs 4.5 lakh crore. The surge represents a 38 per cent increase over the total sales value of Rs 3.27 lakh crore in 2022, according to ANAROCK.

In the first nine months of 2023, residential properties worth Rs 3.49 lakh crore have already been sold across the top 7 cities, marking a 7 per cent increase compared to the entire sales value of 2022. Projections for the ongoing fourth quarter suggest an additional Rs 1 lakh crore in housing inventory sales, pushing the overall sales value beyond the Rs 4.5 lakh crore threshold.

Despite a marginal decrease in the number of units sold (3.49 lakh units in 9 months 2023 compared to 3.65 lakh units in 2022), the surge in sales value underscores heightened demand for high-value homes in 2023.

City-wise sales snapshot

Geographically, the Mumbai Metropolitan Region (MMR) leads with a sales value of approximately Rs 1.64 lakh crore during the first nine months of 2023. The National Capital Region (NCR) follows closely with around Rs 50,188 crore in sales, while Kolkata reports the lowest overall sales value at approximately Rs 9,025 crore.

Pune emerged as a notable performer, with around 63,483 units sold, amassing a sales value of Rs 39,945 crore. This trend indicates a discernible demand for budget-friendly housing options in the city.

Bengaluru reported housing transactions totalling approximately Rs 38,517 crore, involving the sale of 47,100 units. Hyderabad demonstrated its performance with approximately 44,220 units changing hands, with a sales value of approximately Rs 35,802 crore. Chennai experienced market movement, with around 16,310 units sold, reflecting a sales value of approximately Rs 11,374 crore. In Kolkata, the housing market saw transactions of approximately 17,280 units, resulting in a sales value of about Rs 9,025 crore. 

2023 vs 2022: Quarterly growth trends

Anuj Puri, Chairperson, ANAROCK Group, notes, "The housing sales value in 9 months 2023 exceeding that of the whole of 2022 reflects the increased demand for premium luxury homes this year." Puri acknowledges the challenges in drawing an accurate year-on-year comparison due to the 8 to 18 per cent rise in average prices in the top cities during the same period.

Analysing the quarterly trends, Puri observes consistent growth throughout 2023, with each quarter witnessing increased sales values.  Comparing the sales values from January to September in 2022 and 2023 reveals a 44 per cent jump, reaching approximately Rs 3,48,776 crore in 2023 compared to Rs 2,43,027 crore in 2022. Pune leads with a 96 per cent yearly increase, followed by Chennai with a 45 per cent jump, and Hyderabad with a 43 per cent surge.