Realty booming high with 5% increase in sales

The real estate sector is booming across the country. In eight major cities, home sales across all categories rose by 5 percent last year. A total of 3,29,907 units were sold in 2023. This is a ten-year high. Sales increased due to good demand for houses in the middle and premium segments. However, sales of budget houses under Rs 50 lakh fell by 16 percent, with only 97,983 units being sold.

In 2022, the sales in this segment were 1,17,131 units. The supply of houses under Rs 50 lakh (new construction) decreased by 20 percent. According to Knight Frank India, the share of affordable houses in total house sales is limited from 37 percent to 30 percent. It has been revealed that the sales of expensive houses above Rs. 1 crore have increased by 27 percent in 2022 and 34 percent in 2023.

Looking city-wise, house sales in Hyderabad increased by 6 percent, with a sale of 32,880 units as against 31,406 units in 2022. Sales of affordable homes (under Rs 50 lakh) in Mumbai declined by 6 percent to 39,093 units. Overall home sales here rose by 2 percent to 86,871 units. In Bengaluru too, affordable housing declined by 46 percent to 8,141 units. Home sales across all segments increased by one percent to 54,046 units. House sales in Delhi rose 3 percent to 60,002 units. Sales of affordable homes here have dropped by 44 percent. 7,487 units were sold. In Pune, there was a growth of 13 percent to 49,266 units. 14,920 houses were sold in Chennai, an increase of 5 percent. 14,999 housing units were sold in Kolkata, a rise of 16 percent.

Prices increased by 24 percent.

The Anarock report revealed that house prices have increased by 10–24 percent on average this year in seven cities across the country. The increase in the price of materials used in construction has led to an overall rise in the price of the house. Construction (supply) of new houses in seven towns has increased by 25 percent to 4,45,770 units compared to last year, it said.