Housing Market in Top 7 Cities May Scale New Peak in 2023
The unprecedented rise in homeownership sentiment, faster adoption of technology and digital marketing, and innovative business practices have served to soften the overall impact of COVID-19 on the Indian residential sector. In fact, the housing market in the top 7 cities is likely to attain a new peak by 2023, when housing sales are estimated to cross 3.17 lakh units and new launches by 2.62 lakh units during the year. City-wise, MMR and Bengaluru are all set to lead from the front with maximum housing sales and new launches in 2023. Of the total estimated housing sales and new launches in 2023, MMR is likely to comprise a 28% share of total sales and nearly 30% of new launches. Bengaluru is estimated to have a 20% share of homes sold and a 17% share of units launched. NCR may comprise an 18% share of sales and 15% of new launches Pune will retain its strength among the most active markets and may corner a 15% sales share and 18% new launches share Kolkata, Chennai and Hyderabad may each account for approx. 6% of sales and 8% of new launches (Calculations based on y-o-y and q-o-q absorption and launch data trends in the respective cities & ongoing trends). Encouragingly, the ongoing trend of sales exceeding supply is likely to continue and 2021 is expected to witness an increase of 35% in housing launches and a 30% increase in sales over the previous year. However, against the peak year of 2019, supply and sales may be lower by 28% and 31% respectively. With the vaccination drive gaining significant momentum and the spread of COVID-19 under better control for now, 2023 will very likely emerge as the new peak year that breaches 2019 levels with supply that year growing by 11% and sales by 22% over 2019.
Tags : News/Views Pune Bengaluru Hyderabad Kolkata Chennai Sales NCR MMR housing market cities Top Scale New Peak