2023 witnessed record growth in India’s residential real estate market

There was a surge in sales volume and value, luxury housing sales on the rise, amidst macroeconomic uncertainties

The Indian real estate market is a rapidly growing sector. ToweringGoals/Shutterstock

In the financial year 2023, the residential real estate market in India experienced significant growth, setting new records in sales volume and value. Outlook India listed the top seven cities, namely Delhi-NCR, Mumbai, Kolkata, Chennai, Pune, Bengaluru, and Hyderabad, which witnessed a 36 percent increase in the number of units sold compared to the previous year, totaling 3.79 lakh units. The total value of these sales reached a 48 percent rise from financial year 2022, as reported by Anarock Group.

The Mumbai metropolitan region (MMR) led in both sales volume and value, accounting for 30 percent and 48 percent of the total units sold and sales value, respectively. Pune followed with 17 percent of units sold, while Delhi-NCR secured the second position in terms of sales value, contributing 15 percent.

Luxury housing sales also experienced significant growth, driven by the desire for larger spaces, technologically equipped homes, convenience-driven lifestyles, and increased pride of ownership. However, there are macroeconomic risks arising from global economic uncertainties and recent layoffs by corporations, which could impact housing demand in the coming months. Despite these short-term challenges, Anarock expects the housing market to rebound by financial year 2025.

Related: Brick by brick: Mumbai and Delhi NCR lay the foundation for India’s real estate revolution

The Indian real estate market is a rapidly growing sector that contributes significantly to the country’s economic growth. According to The Times of India, factors like urbanisation, rising incomes, and a growing middle class have fueled this growth. The market encompasses various segments, including residential, commercial, retail, and industrial properties. Recent regulatory reforms, such as the Real Estate (Regulation and Development) Act, 2016 (RERA) and the Goods and Services Tax (GST), have brought transparency and accountability to the sector.

Current trends in the Indian real estate market include a continued demand for larger homes due to the pandemic, a high demand for affordable housing driven by government initiatives, a rise in demand for homes in suburban and rural areas, a focus on sustainability and green housing, greater adoption of technology such as smart homes, the emergence of co-living spaces for young professionals and students, and an increased demand for homes with dedicated workspaces due to the work-from-home trend.

Despite these positive developments, challenges remain, including high inventory levels, sluggish demand, and liquidity issues. However, the government’s emphasis on affordable housing and infrastructure development is expected to drive continued growth. Developers can cater to the market by offering flexible payment options, quality construction, incentives for a better standard of living, and leveraging digital technology to reach a wider audience.

The Property Report editors wrote this article. For more information, email: [email protected].