The residential housing market recorded a major boost in 2023, with the top seven markets in the country logging the sale of 271,000 units — the highest for at least three decades — according to a report released by a private real estate consultancy firm.
The report by Jones Lang Lasalle (JLL), released on Wednesday, considered data from Delhi-NCR, Bengaluru, Chennai, Hyderabad, Kolkata, Mumbai, and Pune.
Before 2023, the report said, the highest number of residential units sold in one year in these seven markets was 216,700 units in 2010.
Dr Samantak Das, chief economist and head of research, India at JLL, said his firm analysed data for the past three decades and found that sales and launches peaked and broke sale records from 2010. “The highest sales in last three decades was registered in 2010 earlier but 2023 has broken all records,” he said.
The JLL report said that overall sales across the seven markets picked up significant momentum in the second half of the year.
“It is pertinent to note that both mid-market and premium segments have contributed jointly 23% each to drive the sales in 2023. Delhi-NCR and Mumbai have seen the maximum sales in the premium segment (apartments priced above ₹1.5 crore). There is a rising demand for bigger homes with premium amenities and support infrastructure,” said Siva Krishnan, managing director and head, residential services, India, JLL.
According to the report, the year 2023 also witnessed the highest number of new launches in the top seven markets at 294, 332 units — the previous highest was in 2010, at 281,000 units.
Developers and real estate experts affirmed the market trends and said that strong macro-economic indicators, stable employment, and a fast-growing economy has boosted the confidence of home buyers, who are opting for bigger and premium homes.
Other key factors are that investors have returned to the market in large numbers, and rentals have also improved, bringing buyers in large numbers, they said.
Kamaljeet Singh, vice president at Bestech, a Gurugram-based developer, said that sales in 2023 had been robust as both end users and investors have bought housing units in the city. “The sentiment is very positive in the market and we have witnessed strong sales in our projects this year. Home buyers are looking at 3 BHK units with larger sizes, and there is very less inventory available in this segment. The market will remain strong in 2024 if home loan rates remain at the same level and there is no major change in policy,” he said.
Kalyan Chakrabarti, CEO, Emmar India, said the key reason for strong sales and growth is that India is among the best performing economies in the world. “The reforms in GST and implementation of RERA has also greatly streamlined and benefitted the realty sector more than any other industry. With key parameters strong, I am bullish on the Indian and Gurugram markets in the near future,” he said.
The report also said that in 2023, residential units have seen a steady rise in price across the top seven markets. Bengaluru has seen the maximum rise to the tune of 16%, followed by Delhi NCR at 12%.
Vinod Behl, a real estate expert, said, “Large numbers of investors — both local and NRIs — have returned to the market, and there has been strong speculative buying due to good appreciation in capital, and there is increase in rentals as well. As the returns are good, buyers are flocking to the market but this will increase the prices too.”
Behl further said that considering that there is a big shortage of housing units, along with rise in aspirational buying, the demand for housing will remain high in 2024.
Gurugram-based developer Pradeep Agarwal, founder and chairman of Signature Global, said they were able to sell housing stock worth ₹3150 crore in first nine months of 2023. “We expect strong growth in 2024… Good properties by established developers with a strong delivery record are being rewarded. the government should ensure interest rates remain stable and more benefits are given to buyers to ensure robust real estate market,” he said.