Housing sales in India surged 48% year-on-year to ₹3.47 lakh crore during the financial year 2022-23. The significant increase in residential sales was seen across all seven major cities, which witnessed higher volumes and better price realisation, according to the latest primary housing sale report by real estate consultant Anarock.
The overall sale of residential houses in value terms surged to ₹3,46,960 crore in FY2022-23, up from ₹2,34,850 crore in the fiscal year 2021-22. In volume terms, the sales grew 36% to 3,79,095 units in FY23, up from 2,77,783 in the previous year.
"India's residential real estate segment continues to show boundless forward momentum, and is setting unprecedented benchmarks," said Anuj Puri, chairman of Anarock Group.
Among the top seven cities, the housing sales in Delhi-NCR inclined 42% to ₹50,620 crore vs ₹35,610 crore in the year-ago period. In Mumbai Metropolitan Region (MMR), housing sales surged 46% to ₹1,67,210 crore as compared to ₹1,14,190 crore. In Bengaluru, the housing sale rose 49% to ₹38,870 crore in FY23 as compared to ₹26,100 crore in FY22. Similarly, Pune saw housing sales rise the maximum at 77% to ₹33,730 crore, up from ₹19,100 crore.
The residential housing sale in Hyderabad increased 50% to ₹34,820 crore from ₹23,190 crore in the previous year. Chennai and Kolkata also recorded a 24%, and 38% rise in housing sales in FY23, respectively, the Anarock data shows.
The report attributes the surge in new residential supply to the "unwavering appetite for homeownership", with the demand for housing continuing to rise unabated. Consequently, leading and listed developers have ramped up efforts to meet the demand for new residential properties.
Additionally, despite global economic headwinds, including layoffs by several large and small corporates, the bull run in the Indian housing market continued in the first quarter of the year i.e. January-March 2023, says Anarock. "Top 7 cities recorded new launches of around 1.09 Lakh units in Q1 2023 against 89,100 units in Q1 2022 and 92,900 units in Q4 2022, indicating a rise of 23% on an annual basis and a rise of 18% from the previous quarter," the report 'The Housing Market Boom' said.
Anarock says emerging headwinds could pose a challenge in the short term. "Continued inflation concerns along with a possible rate hike by the RBI in the near future and recent massive layoffs by several large corporates could dent growth in the upcoming two quarters for the housing market. Once the dust settles down, the housing market is again likely to pick momentum backed by a rise in demand for homeownership."
In its earlier report 'FLUX' released last month, Anarock said private equity investments in real estate remained stable during FY23 as compared to FY22 at $4.2 billion. Commercial real estate and industrial and logistics attracted pan India platforms, with larger deal values (>$500 million), while the residential sector attracted smaller ticket platform deals ($50 million - $125 million) and was more regional in nature.
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