Bengaluru: The rise in homeownership sentiment, faster adoption of technology, and digital marketing during the pandemic are likely to lead to a continued surge in the residential market by 2023. Housing sales in the top seven cities are estimated to cross 3.17 lakh units and fresh launches by 2.62 lakh units in 2023, according to Anarock Property Consultants.
Mumbai Metropolitan Region (MMR) and Bengaluru are expected to lead with maximum housing sales and new launches in that year.
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, followed by Bengaluru with 20% share of homes sold and a 17% share of units launched.
National Capital Region (NCR) may comprise an 18% share of sales and 15% of new launches, while Pune may corner a 15% sales share and 18% new launches share.
Kolkata, Chennai and Hyderabad may each account for about 6% of sales and 8% of new launches.
It said 2021 is expected to fare better than 2020, but it is unlikely to reach the levels of 2019.
“The residential sector was showing healthy year-on-year growth since 2017 until the latest peak year of 2019, but this trajectory was derailed by the covid-19 pandemic. Otherwise, 2020 was expected to be a watershed year for the housing sector. While the second half of the year did showcase the remarkable resilience of Indian residential real estate, a new bottom for the sector was created in 2020 with housing sales plunging to nearly 1.38 lakh units while new launches dropped to 1.28 lakh units. 2020 is not a year that the industry is likely to forget very soon,” said Anuj Puri, chairman, Anarock.
The ongoing pattern 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.
“The trend of demand remaining buoyant can be attributed to several factors,” said Puri. “These include but are not limited to sustained low interest rates, an overall improvement on the job market, resumed economic activity and sustained stock market growth, various government interventions to combat the pandemic’s deleterious effects, and an increasing desire to own physical assets during times of unprecedented uncertainty.”
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, Anarock said.
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