Record-Breaking Sales of Homes Despite a 15% Increase in Loan Costs and Prices

According to the figures, residential sales in the calendar year 2023 reached 476,530 units, marking the highest sales recorded in any calendar year so far. In 2022, sales amounted to 364,870 units.

The sale of homes has broken all previous records. Residential sales in the seven major cities of the country increased by 31% this year, reaching a record 477,000 units, as reported by real estate consultancy firm Anarock. Despite an average increase of 15% in prices and higher interest rates, the surge in sales has been noted. If we consider Tier 2 and Tier 3 cities, these figures are expected to be even higher. Real estate experts suggest that people have realized the importance of homes post the pandemic, and the demand for homes has continued to surge.

Impact of Rising Prices on Demand Residential sales in the calendar year 2023 reached 476,530 units, marking the highest sales recorded in any calendar year so far. In 2022, sales amounted to 364,870 units. Anarock’s Chairman, Anuj Puri, stated that despite global uncertainties, rising property prices, and an increase in interest rates in the first half of this year, 2023 has been excellent for the Indian residential sector. He mentioned that residential sales in the top seven cities surpassed the previous high levels in 2022. Puri expressed concern that rising property prices and interest rates, along with uncertainties in the global market, might affect residential sales, but the high demand continued.

Mumbai Leads in Home Sales According to the data, Mumbai Metropolitan Region (MMR) recorded the highest sales among the top seven cities. Pune secured the second position. Sales in MMR increased by 40%, reaching 153,870 units compared to 109,730 units last year. Pune witnessed a 52% increase in residential sales, totaling 86,680 units, up from 57,145 units in the previous year. Delhi-National Capital Region (NCR) saw a modest 3% increase in sales, with 65,625 units this year compared to 63,710 units last year. In Bangalore, residential sales increased by 29%, reaching 63,980 units from 49,480 units last year. Kolkata experienced a 9% increase in sales, going from 21,220 units to 23,030 units. Chennai recorded a 34% increase, with sales rising from 16,100 units last calendar year to 21,630 units this year. According to real estate consultants, housing prices increased by 10% to 24% in these seven cities due to rising construction costs and strong demand.

Continued Demand for Homes in the New Year Renowned real estate expert and CMD of Antriksh India, Rakesh Yadav, stated that the demand for homes will continue in the new year. Homebuyers are increasingly interested in luxurious homes, and people are attracted to larger homes. As a result, the sales of expensive homes have increased. This trend is expected to continue in the coming years due to India’s rapidly growing GDP and increasing incomes. People are upgrading from 1BHK to 2BHK and from 2BHK to 3BHK. Those who don’t own homes are realizing their dream of homeownership. Therefore, the demand for homes is not expected to decrease for the next five years.