Indian real estate market anticipates record sales in FY23

India’s residential real estate segment created a new record for highest sales, hitting $42.19 billion in FY23, registering an annual growth of 48 percent, latest market research said. In volume terms, FY23 saw sales of 379,000 units across the top seven cities,  a jump of 36 percent from the previous year, the research by Anarock, a leading real estate consultancy which has operations in India and GCC, showed.

“FY23 has set unprecedented benchmarks in both value and volume terms in the Indian housing sector,” Anuj Puri, Chairman, Anarock Group, said. The Mumbai Metropolitan Region (MMR) led with the largest share in sales value and volume in FY23, accounting for 30 percent of the total units sold, while Pune city clocked the highest growth rate at 77 percent. The jump in sales growth in the other six top Indian cities is estimated to be in the range of 24-77 percent, the study said. 

The study said there has also been a significant rise in the sales of luxury housing units priced above $ 182410 (INR 15 million) across the top seven cities in FY23. “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,” Puri said. “People are willing to pay for these factors, as has been amply vouchsafed by recent record runs on luxury projects by leading developers” he aid

The study said luxury real estate has especially 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. MMR, Delhi-National Capital Region (NCR) and Bengaluru have led from the front in terms of luxury housing uptake in the fiscal year.

The last quarter of the fiscal witnessed a significant increase in luxury housing demand, bolstered by Union Budget’s revision of capital gains tax which limits the benefit to INR 100 million after the end of the preceding fiscal year. “This led to a bull-run on qualifying properties,” the report said.