Pune housing market sees the highest surge in value of homes sold in FY23

• As many as 3.79 lakh housing units were sold in FY23, 6% higher than the previous year.
• Mumbai Metropolitan Region (MMR) led with the largest share in both sales value and volume.
• Luxury real estate has experienced a notable surge in demand, after the pandemic changed their housing preferences.

The Indian real estate market seems to be growing in volumes and value as well. According to a new report by Anarock, FY23 created a new record of highest sales volume across the top seven cities. As many as 3.79 lakh units were sold in the period — 36% higher than the previous year.

The value of all these units sold is worth ₹3.47 lakh crore — 48% more than in FY22. Interestingly, Pune recorded the highest growth in terms of sales value at 77%, followed by Hyderabad and Bengaluru. In Chennai, the value growth was at 24% for FY23.

Mumbai Metropolitan Region (MMR) led with the largest share in both sales value and volume —- 30% of the total units sold during the fiscal were in MMR. The sold stock is valued at ₹1.67 lakh crore, accounting for 48% in sales value share.

Luxury and tech in high demand

Luxury housing market also continued to boom. The increase in both sales volume and prices has led to remarkable growth in the value of the units sold. Additionally, there has been a notable surge in the sales of luxury housing — i.e units priced above ₹1.5 crore, in the top seven cities.

“Luxury real estate has experienced a notable surge in demand following the pandemic as homebuyers have reconsidered their housing preferences. In addition to seeking larger spaces, there is now a higher demand for technologically advanced homes that offer convenience and a sense of pride in ownership,” the report said.

Metropolitan regions like MMR, National Capital Region (NCR), and Bengaluru have been at the forefront of this trend, but Pune is emerging as another city to watch.

Pune has not only witnessed the highest growth in terms of value but has also captured a 9% share of the luxury housing market, a significant increase from previous years.

“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,” says Anuj Puri, chairman of Anarock group.

The last quarter of the fiscal saw a significant uptick in luxury housing demand. This was after the Union Budget 2023-24 revised capital gains tax and limits the benefit to ₹10 crore after the end of the preceding fiscal year. This led to a high sales of qualifying properties.