Real Estate

Real Estate Boom: Housing in Top 7 Cities Set for an 8-10% Average Prices Surge by 2024

Housing prices in top 7 cities

According to Anarock, housing prices in top 7 cities india are expected to get more expensive by as much as 8-10% in 2024. Housing prices jumped by 10-24% across the top 7 cities in 2023, primarily due to heightened input expenses and strong demand.

Indian residential real estate has experienced an exceptional year despite escalating property prices and an increase in home loan interest rates in 2023, As per Anarock Research.

Housing sales in the top 7 cities will reach an all-time high

Sales of housing in the top 7 cities reached an all-time high in 2023, surpassing the previous peak in 2022.

A total of 4,76,530 units were sold across these cities in 2023, representing an increase of 31% from 3,64,870 units sold in 2022. The last peak was observed in 2022 after 2014, with around 3.43 lakh units sold in the top 7 cities.

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

The number of new property launches is on the rise

Moreover, new property launches across the top 7 cities witnessed a 25% annual surge, increasing from approximately 3,57,640 units in 2022 to about 4,45,770 units in 2023. The majority of new launches took place in MMR and Pune, accounting for nearly 54% of the total number.

In spite of global headwinds, rising domestic property prices, and interest rate hikes over the first half of this year, the Indian housing sector has enjoyed a phenomenal 2023, says Anuj Puri, chairman of Anarock Group. A new high was reached in housing sales in the top seven cities in 2022, and new launches remained in line with the current housing demand.”

Research by Anarock showed that 31% of total new supply was priced between 40 and 80 lakh rupees, 28% between 80 lakh and 1.5 crore rupees, and 23% over 1.5 crore rupees. The share of affordable housing was the lowest at 18%.

Overview of new launches by city

Cities Name20232022% Change (2022 Vs 2023)
Source: Anarock

Approximately 6 lakh units will be available for sale-housing prices continue to rise in top 7 cities

By the end of 2023, the total available housing inventory in the top 7 cities had decreased by 5% from the previous year, despite substantial new supply throughout the year.

Across these cities in India, approximately 6 lakh units are currently available for sale.

The demand for luxury housing on a budget continues to rise

In the aftermath of the pandemic, homebuyers are seeking larger and more comfortable living spaces.

Compared to 2018, the number of new luxury properties added to the top 7 cities in 2023 skyrocketed fivefold. Luxury housing demand is not expected to slow down in 2024, despite this substantial growth in supply.

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I'm Shruti Mishra, Editorial Director @Newsblare Media, growing up in the bustling city of New Delhi, I was always fascinated by the power of words. This love for words and storytelling led me to pursue a career in journalism. In this position, I oversee the editorial team and plan out content strategies for our digital news platform. I am constantly seeking new ways to engage readers with thought-provoking and impactful stories.

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