The Indian real estate market experienced a strong uplift in 2023. Data from Anarock reveals that housing sales in the top seven cities of India reached 476,000 units in 2023, marking a 31% increase, which hits a new high over the past decade. The overall average housing price also rose from 6,150 INR (approximately 74 USD) per square foot in 2022 to 7,080 INR (approximately 85 USD) per square foot in 2023.

Being the most developed region in India, the real estate market in Mumbai Metropolitan Region (MMR) constitutes a major part of India's real estate sector. In 2023, housing sales in this region reached 153,900 units, accounting for 32% of the total sales in the top 7 cities, marking a 40% year-on-year increase compared to the 109,700 units sold in 2022.

The prosperity of the real estate market naturally led to price increases. The average capital value in MMR rose from 11,890 INR (approximately 143 USD) per square foot in 2022 to 13,700 INR(approximately164 USD) per square foot in 2023, a 15% year-on-year increase. Despite such a significant increase in sales volume, the supply-demand situation in MMR housing market remains relatively balanced. Available inventory increased by only 2% compared to 2022. The increased market demand effectively absorbed the new supply, reducing the inventory overhang to 16 months in 2023 from 22 months in 2022.

In terms of sales structure, affordable housing priced below 8 million INR remained the dominant segment in MMR, accounting for 62% of total sales in 2023. While luxury home sales grew at a slower pace compared to affordable housing sales, the rising demand for luxury homes is a major trend in the overall development of India's real estate sector post-pandemic. In the National Capital Region(NCR), luxury home sales accounted for 41% of local sales in 2023. The new generation of buyers has shown a strong preference for high-end properties, prioritizing not only luxury amenities but also green housing and home-office-friendly architectural designs.

The current boom in India's real estate market is closely related to the unlocking of India's economic potential. Latest estimates suggest that India's GDP growth rate for the fiscal year 2023 stood at 7.2%, leading among major global economies. With an urbanization rate projected to reach 42% in 2023, India still has a significant gap compared to developed economies, providing a fundamental driving force for sustained growth in the Indian real estate market. Besides domestic demand, investments from non-resident Indians (NRIs), particularly in high-end real estate, also boost real estate development. According to NoBroker's forecast, NRIs' investments in Indian real estate will account for 25% of the total by 2025. Additionally, rapid infrastructure development, such as the construction of the Delhi-Mumbai Expressway and other major highway projects, has effectively stimulated housing demand, enhancing connectivity across the country and boosting residential demand in major cities.