Pune Claims Second Place In 2023 Housing Sales, Dominates Affordable Market

The Indian residential real estate market showcased an impressive feat in 2023, surpassing expectations with record-breaking housing sales across the top 7 cities, as revealed by the latest data from real estate consultant Anarock.

Despite encountering challenges like soaring property prices and early-year hikes in home loan interest rates, the market witnessed a remarkable surge, with approximately 4,76,530 units sold in 2023—a substantial 31 per cent surge from the 3,64,870 units sold in 2022.

The report highlighted the Mumbai Metropolitan Region (MMR) leading the charts, recording about 1,53,870 units sold in 2023, closely trailed by Pune with around 86,680 units sold.

In Delhi-NCR, sales saw a modest 3 per cent increase to 65,625 units from 63,710 units. Bengaluru witnessed a 29 per cent spike in sales, reaching 63,980 units from 49,480 units. Hyderabad observed a 30 per cent surge to 61,715 units from 47,485 units. Kolkata experienced a 9 per cent uptick to 23,030 units from 21,220 units. Meanwhile, Chennai witnessed a substantial 34 per cent rise to 21,630 units from 16,100 units.

According to the Affordability Index by Knight Frank India, Ahmedabad, Pune, and Kolkata emerged as the most affordable cities for home buyers. Mumbai remains the most expensive, followed closely by Hyderabad.

Ahmedabad leads the affordable housing market with a 21 per cent EMI-to-income ratio for households, implying that an average household in Ahmedabad would allocate 21 per cent of its income towards the EMI for a home loan. Pune and Kolkata follow, both with an EMI-to-income ratio of 24 per cent.

Mumbai, the costliest residential market, showcased a 2 per cent improvement in its affordability index, dropping from 53 per cent in 2022 to 51 per cent in 2023. Hyderabad held its place as the second most expensive market, maintaining a consistent affordability index of 30 percent, while experiencing an 11 percent surge in home prices in 2023.