In a significant boost to the Indian real estate market, housing unit sales in the country’s top 7 cities saw a remarkable 36% surge in the third quarter of 2023, according to a report released by real estate consultancy group Anarock. These top cities include the Mumbai Metropolitan Region (MMR), Delhi-NCR, Bengaluru, Pune, Hyderabad, Chennai, and Kolkata.
The cumulative number of housing units sold in these cities during this period reached 1,20,280, a substantial increase from the 88,230 units sold during the same period the previous year.
Mumbai Leads the Way
Mumbai emerged as the leader among these cities, recording a total sale of approximately 38,500 units in the July-September period. This marked a robust 46% increase compared to the 26,400 units sold in the corresponding period of 2022.
Pune followed closely, with total housing unit sales reaching 22,885, showing an impressive 63% growth from 14,080 units sold the previous year.
Anuj Puri, Chairman of Anarock Group, noted, “Cumulatively, the two western cities accounted for 51 percent of total sales seen across the top 7 cities in Q3 2023.”
Steady Growth Across Cities
Other top cities also experienced substantial growth in housing unit sales:
Bengaluru witnessed a 29% increase, with a total of 16,395 housing units sold during the quarter compared to 12,690 in the previous year.
Hyderabad recorded housing sales of 16,375 units, marking a 41% increase from 11,650 units in the same period the previous year.
Delhi-NCR saw a more modest 6% increase, with sales totaling 15,865 units, up from 14,970 in Q3 2022.
Kolkata reported sales of 5,320 units, reflecting a 7% increase from 4,950 units in the July-September period of the previous year.
Chennai, although at the bottom of the list, saw a notable 42% increase, with 4,940 housing units sold compared to 3,490 units in the same period last year.
New Supply Surges
Anarock’s report also highlighted a 24% increase in new housing supply, with approximately 1,16,220 new units launched in Q3 2023 compared to 93,490 units in Q3 2022. Major cities contributing to this new supply included MMR, Hyderabad, Pune, and Bengaluru, accounting for 87% of the total additions.
The mid-range segment, consisting of homes priced between ₹40–80 lakh, continued to dominate new supply with a 28% share. The luxury and premium segments, comprising homes priced above ₹1.5 crore and between ₹80 lakh to ₹1.5 crore, respectively, closely followed with a 27% share each.
Despite the increase in new supply, existing housing inventory across the top 7 cities saw a 3% annual decline, from approximately 6.30 lakh units in September 2022 to about 6.10 lakh units at present.
The report also noted a double-digit growth of 11% year-on-year in average residential prices across the top 7 cities, with Hyderabad experiencing the highest yearly average residential price growth at 18%, followed by Bengaluru with a 14% annual rise. These trends indicate the resilience and growth potential of India’s real estate market in the third quarter of 2023.
