The Indian real estate market experienced a remarkable upswing in the first quarter of 2023, with housing sales surpassing 100,000 units across the top 7 cities. Additionally, new launches have seen a significant rise of 23% year-on-year, increasing from 89,140 units in Q1 2022 to approximately 110,000 units in Q1 2023.
NCR, the National Capital Region, is poised to take the lead, with an estimated completion of around 170,000 units in 2023, accounting for nearly 30% of the year’s delivery pipeline. This represents an impressive 97% surge compared to the previous year.
According to the latest report by Anarock, NCR stands out as the frontrunner among India’s top seven cities in terms of deliveries in 2023, reflecting a staggering 97% growth from the previous year.
The high-ticket segment priced above INR 1.5 crore has played a significant role in this growth, with approximately 24% of the total units sold falling into this category, as per the report.
Delhi-NCR has witnessed a surge in demand for large houses, especially after the pandemic. This has significantly boosted the premium and luxury sectors, which have rapidly gained momentum. According to a recent CBRE South Asia report, the sale of luxury housing in Delhi-NCR has clocked a massive growth of 216%, surpassing other major cities like Mumbai, Hyderabad, Kolkata, and Pune. Families today want to lead a lavish lifestyle, and by investing in luxury residences, they also ensure that all the facilities are available inside their housing complex. Our buyers have also depicted massive interest in luxury residences, owing to the premium facilities and amenities that these spaces offer, says Yukti Nagpal,Director,Gulshan Group.
Regarding new launches, the Mumbai Metropolitan Region (MMR) and Pune accounted for 52% of the total launches in the top cities. In comparison, Hyderabad experienced a 32% decline in new supply on a yearly basis.
NCR observed a 34% increase in new launches compared to Q1 2022, with approximately 12,450 units launched in Q1 2023. Residential property prices in the top 7 cities grew 6-9% in Q1 2023 compared to the same period in the previous year.
“NCR’s remarkable 97% increase in deliveries in 2023 showcases its emergence as a promising housing hub in India. With its strong potential and attractiveness in the real estate market, NCR is poised to provide lucrative opportunities for both buyers and investors alike, shaping the landscape of India’s housing sector,” says Vikas Bhasin,Managing Director,Saya group.
“The surge in housing demand in the Delhi NCR region post-pandemic reflects the resilience and enduring appeal of the real estate sector. The two consecutive moderation in repo rate by RBI has also fuelled the positive sentiment prevailing in the market, indicating sustained growth and a bright future for the housing market in NCR, fueling optimism among industry experts and stakeholders,” says Salil Kumar,Director-Marketing and Business Management,CRC group.
The latest ANAROCK Research data further reveals that quarterly sales have reached an all-time high, with top cities reporting a year-on-year increase of over 14% against the 99,550 units sold in Q1 2022. MMR and Pune accounted for 48% of the total sales, with Pune demonstrating a significant 42% annual surge.
“These numbers are highly encouraging, indicating that the real estate sector is experiencing strong tailwinds and is on a path of robust growth. With the government’s focus on affordable housing and infrastructure development, the residential segment is in high spirits, offering opportunities for self-use and investment purposes,” says Sanjay Sharma,Director,SKA group.
In the context of Gurugram, the city has experienced a slight decline in sales during Q1 of FY2023, contrary to the trend observed in the seven major cities. This decline could be attributed to the saturation of the residential property market in Gurugram proper, prompting realty activities to flourish in the city’s suburbs. Places near Sohna Road and Dwarka Expressway are witnessing a positive buyer response, benefiting from new connectivity and infrastructural developments.
Undoubtedly, the Indian real estate market has embarked on a solid growth trajectory in Q1 2023, with housing sales and new launches surpassing the one lakh mark and recording a 14% and 23% year-on-year increase, respectively. Although concerns persist, the residential segment, driven by favourable market conditions, appears unstoppable.