Housing in top 7 cities to witness a 8-10% average price rise in 2024

• In 2023, new property launches across the top 7 cities witnessed a 25% annual surge.
• MMR and Pune accounted for the majority of new launches, constituting nearly 54% of the total new launches.
• Approximately 6 lakh units are available for sale across top 7 cities in India as of 2023-end.

Indian homes across top 7 cities are expected to get pricier by as much 8-10% in 2024. The market might absorb these hikes, without an impact on demand, as per real estate consultancy Anarock.

In 2023, housing prices surged by 10-24% across the top 7 cities on an annual basis. This was primarily driven by heightened input expenses and robust demand.

Despite the escalation in property prices and the increase in home loan interest rates earlier in 2023, the Indian residential real estate sector has experienced an exceptional year, according to the latest Anarock Research data.

Housing sales in top 7 cities reach an all time high in 2023

Housing sales in the top 7 cities have reached an all-time high in 2023, surpassing the previous peak recorded in 2022.

Approximately 4,76,530 units were sold in 2023 across these cities, marking a significant 31% year-on-year increase from the 3,64,870 units sold in 2022. The last peak within the decade was observed in 2022 after 2014, with around 3.43 lakh units sold in the top 7 cities.

MMR recorded the highest sales in 2023, with approximately 1,53,870 units sold, followed by Pune with around 86,680 units. These two western markets emerged as the primary drivers of residential sales in 2023.

New property launches witness a surge

Moreover, new property launches across the top 7 cities witnessed a 25% annual surge, rising from approximately 3,57,640 units in 2022 to about 4,45,770 units in 2023. Mumbai Metropolitan Region (MMR) and Pune accounted for the majority of new launches, constituting nearly 54% of the total new launches throughout the year.

Says Anuj Puri, chairman Anarock Group, "2023 has been phenomenal for the Indian housing sector, despite global headwinds, rising domestic property prices, and interest rate hikes over the first half this year. Housing sales in the top 7 cities breached the previous high of 2022, and new launches stayed in step with the current housing demand.”

According to Anarock research, 31% of total new supply was in mid-range (₹40-80 lakh) price bracket, 28% in ₹80 lakh -₹1.5 crore bracket and 23% in the ticket price of over ₹1.5 crore. The share for affordable housing was the lowest at 18%.

New launches overview - City-wise


Source: ANAROCK Research

Approximately 6 lakh units available for sale as of 2023-end

Despite substantial new housing supply throughout the year, the total available inventory in the top 7 cities decreased by 5% by the end of 2023 compared to the previous year.

Approximately 6 lakh units are currently available for sale across these cities in India.

Demand for budget luxury housing continues to rise

Demand for luxury housing has surged significantly, as homebuyers seek larger and more comfortable living spaces in the aftermath of the pandemic.

The addition of new luxury properties across the top 7 cities in 2023 skyrocketed fivefold compared to figures recorded in 2018.

This substantial growth in luxury supply indicates a sustained interest in upscale housing options. Looking ahead to 2024, there are no indications of a slowdown in the demand for luxury housing.