The top seven cities recorded sales of around 3.79 lakh units, a 36 per cent growth over the previous year, according to a report.

These cities saw a growth of anywhere between 24 per cent to 77 per cent in the total value of housing sold during the year, with Pune recording 77 per cent growth both in terms of sales value and volume, while others, including Bengaluru, MMR, and NCR, saw 49 per cent, 46 per cent, and 42 per cent, respectively.

“FY23 created a new record of highest sales volume across the top seven cities with approx. 3.79 lakh units sold—36 higher than the previous year. The year saw residential real estate worth ₹3.47 lakh crore sold—48 per cent more than in FY22,” noted Anuj Puri, Chairman, ANAROCK Group.

Also read: Sebi moots regulatory framework for fractional ownership platforms offering real estate

The country’s housing market is now the primary growth driver for its real estate sector, among other factors. Mumbai Metropolitan Region (MMR) led with the largest share in both sales value and volume; 30 per cent of the total units sold during the fiscal were in MMR, with this sold stock valued at ₹1.67 lakh crore, accounting for 48 per cent in sales value share.

“India’s residential real estate segment continues to show boundless forward momentum, and is setting unprecedented benchmarks,” said Puri.

Luxury housing boom continues

While the rise in sales volume and price increments have driven phenomenal growth in the value of the units sold, there has also been a significant rise in luxury housing (units priced above ₹1.5 crore) sales across these cities.

Although MMR, NCR, and Bengaluru have led from the front in terms of luxury housing uptake, the report states Pune is another emerging market in the segment, as the city recorded a 9 per cent share of the luxury segment, up from a negligible share in earlier years.

Also read: Luxury housing, NRI investments, rent inflation dominated India’s real estate market in 2022: Report 

“The uptrend in luxury housing is the result of overall improved homeownership sentiment, improved earning potential, and the desire for homes that are future-proofed in terms of size, lifestyle quotient, and resale value growth,” said Puri.

Moreover, the last quarter of the fiscal year witnessed a significant increase in luxury housing demand, bolstered by the Union Budget’s revision of capital gains tax, which limits the benefit to ₹10 crore after the end of the preceding fiscal year.