A brief on how 2023 was for the Indian Residential Real Estate in Mumbai
2023 was a phenomenal year for the Indian Real Residential Estate landscape as it touches record highs!
To give a perspective, the total sales in the first 9M of 2023 in top seven cities stood at Rs. 3.49 lakh crores as per a report by ANAROCK Research.
"The fact that the housing sales value in 9M 2023 exceeded that of the entire 2022 reflects the increased demand for premium luxury homes this year," Anuj Puri, Chairman of ANAROCK Group, said. "This makes it difficult to compare annual sales values apples to apples, especially since the top cities' average prices increased by 8–18% this year," Puri added.
"Homes worth Rs 1,12,976 crore were sold in the top 7 cities in Q1 2023; this amount increased by 1% in Q2 and then by 8% in Q3. Sales in these markets have been strong during the current holiday quarter, and they will continue to be so in the final quarter of 2023. We thus project that by the end of 2023, the total value of home sales will have surpassed Rs 4.5 lakh crore," Puri further added.
Residential real estate properties can be categorized into the following –
Affordable – Below Rs. 40 lakhs
Mid-segment homes – Rs. 40 to 80 lakhs
Premium – Rs. 80 to 150 lakhs
Luxury – Rs. 1.5 crores to 2.5 crores
Ultra Luxury – Above 2.5 crores
Mumbai’s role in the Indian residential real estate market –
As of Q3 2023, MMR recorded the highest sales of 38,500 units amongst the top 7 cities and witnessed the highest new launches as well of approx. 36,250 units.
Demand for residential property remains strong since there is unrelenting quest for homeownership post covid fuelled by stable repo rates and increase in net disposable income for many consumers.
The mid-range and premium properties are mainly dominated by large and listed developers. Increase in brand awareness and huge marketing, consumers have started preferring properties sold by well reputed developers.
In terms of property concentration, 63% of the newly launched properties are in the range of affordable and mid-segment homes in MMR.
Home buyers especially in Mumbai are looking at suburban and peripheral areas for affordable housing options with good connectivity to the main city due to rising property prices in city centre.
