Oct 06, 2023

Resilient Growth in Indian Residential Real Estate Market: Key Insights from Q3 2023

Despite rising construction costs and erratic monsoons impacting economic growth, the Indian residential real estate market experienced remarkable growth in the third quarter of 2023. According to a report by property consultant ANAROCK, house sales in India's top seven cities surged by 36% year-on-year, reaching 1,20,280 units, up from 88,230 units in the same period the previous year.

Mumbai and Pune emerged as the frontrunners, collectively accounting for a significant 51% of total home sales among these cities. Mumbai Metropolitan Region (MMR) recorded the highest sales with 38,500 units, while Pune followed closely with 22,880 units sold, representing a massive 63% increase.

The report also highlighted a substantial increase in new housing supply, with over 1,16,220 units added in the quarter, compared to 93,490 units in the same period in 2022. This uptick in supply, along with stable home loan interest rates due to the Reserve Bank of India's repo rate pause, contributed to the robust sales momentum.

Aman Sarin, Director, and CEO of Anant Raj Ltd., while chatting with Outlook, noted that improved project deliveries, growing housing demand, supportive government policies, and rapid urbanization have boosted consumer confidence and attracted investors back into the housing market. The positive trends in India's real estate sector are expected to continue into the festive quarter, driven by increased disposable incomes and a favorable economic climate.