The Indian realty market posted all-time high sales worth Rs 3.47 trillion, an increase of as much as 48 per cent year-on-year in FY23, as compared to the previous financial year, according to real estate consultant Anarock.
The sales volume also showed strong growth trajectory, with a 36 per cent rise to 379,095 units sold in FY23.
"FY23 created a new record of highest sales volume across the top seven cities with about 379,000 units sold--36 per cent higher than the previous year,” said Anuj Puri, chairman, Anarock group.
Mumbai Metropolitan Region (MMR) led with the largest share by both sales value and volume.
“Around 30 per cent of the total units sold during FY23 were in MMR, with this sold stock valued at Rs 1.67 trillion, accounting for 48 per cent in sales value share,” Puri said.
Anarock’s data shows that housing sales in Delhi-NCR and Mumbai Metropolitan Region (MMR) surged by 42 per cent and 46 per cent respectively, while Bengaluru saw a 49 per cent spike. Pune topped the growth chart with a striking 77 per cent rise. Sales in Hyderabad and Chennai grew by 50 per cent and 24 per cent, respectively, while Kolkata recorded a 38 per cent increase.
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Interestingly, all cities recorded growth of between 24 per cent and 77 per cent in the total value of houses sold during the year. Pune's growth was the highest by both sales value and volume.
While the rise in sales volume and price increments have driven phenomenal growth in the value of the units sold, there has been a significant rise in luxury housing (units priced above Rs 1.5 crore) sales across these cities as well.
“The uptrend in luxury housing is the result of overall improved homeownership sentiment, improved earning potential, and the desire for homes that are future-proofed in terms of size, lifestyle quotient, and resale value growth,” said Puri.
People are willing to pay for these factors, as has been amply vouchsafed by recent record runs on luxury projects by leading developers, he added
Luxury real estate picked up after the pandemic caused homebuyers to reimagine their housing choices. Apart from larger space, there is now increased demand for technologically equipped homes that tick all the boxes in terms of a convenience-driven lifestyle and pride of ownership.
Anarock data shows that MMR, NCR and Bengaluru have led in luxury housing uptake, but Pune is another city to watch. While it registered the highest growth in value terms, it also recorded a nine per cent share of the luxury segment, from a negligible share in earlier years.
The last quarter of FY23 saw a significant increase in luxury housing demand, bolstered by Union Budget’s revision of capital gains tax which limits the benefit to Rs 10 crore after the end of the preceding fiscal year. This led to a bull-run on qualifying properties.