Mumbai region witnesses 40% rise in housing sales; Over 4 lakh homes completed in top-7 cities in 2023: Report

Mumbai Metropolitan Region (MMR) has witnessed a sharp surge in housing sales, as well as, completion of residential projects in 2023 despite the high home loan interest rates and a spike in property prices in the country.

The top-7 real estate markets in India--National Capital Region of Delhi (Delhi-NCR), Mumbai Metropolitan Region, Bengaluru, Pune, Hyderabad, Chennai, and Kolkata saw a 31% rise in housing sales last year, according to the latest data by Anarock Research.

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MMR saw a 40% jump in housing sales in 2023. A total of 1,53,870 houses were sold in MMR in 2023 as against 1,09,730 units sold in 2022.

The Mumbai Metropolitan Region also saw the highest completion of housing units in 2023 at 1,43,500 units.

According to Anarock Group Chairman Anuj Puri, 2023 saw the maximum annual unit completions, with over 4.35 lakh homes gaining RTM (ready to move-in) status across the top 7 cities.

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"Data also indicates that more than 5.31 lakh units are scheduled to be completed across the top 7 cities in 2024," Puri said.

Housing sales in 2023

Housing sales peaked in 2023, breaching the previous high of 2022 as per Ananrock report. Around 4,76,530 housing units were sold in 2023 against 3,64,870 units in 2022 across the top 7 cities – rising by 31% Y-o-Y.

In MMR, around 1,53,870 houses were sold in 2023, followed by Pune with approx. 86,680 housing units, NCR with 65,625 housing units, Bengaluru with 63,980 housing units, and Hyderabad with 61,715 housing units, respectively. In Kolkata, 23,030 houses were sold while in Chennai 21,630 were sold in 2023.

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Annually, housing prices rose by between 10-24% across the top 7 cities, primarily due to increased input costs and strong demand in 2023. Hyderabad recorded the highest yearly jump of 24% in average residential prices – from ₹4,620 per sq. ft. in 2022 to nearly ₹5,750 per sq. ft. in 2023. Bengaluru witnessed an 18% increase in average housing prices from ₹5,570 per sq. ft. to ₹6,550 per sq. ft.

"Demand is likely to remain undeterred in 2024, even with average prices likely to appreciate by 8-10% across the top 7 cities," the Anarock Chairman said.

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According to Puri, there has also been an increase in demand for luxury housing among homebuyers recently. "The new luxury supply addition across the top 7 cities in 2023 has jumped up five times when compared to 2018," he added, "there is no reason to expect luxury housing demand to taper off in 2024".

Housing completion in 2023

Of the 4.35 lakh homes completed in 2023, MMR topped with 1,43,500 units, followed by NCR at 1,14,280 units. Pune saw approx. 65,000 units completed in 2023, against 84,200 units (approx) in 2022.

Bengaluru, Hyderabad, and Chennai collectively saw 87,190 housing units completed in 2023. And, in Kolkata, 25,075 houses were completed last year.