Mumbai Reigns Supreme: Residential Home Demand Surges, Delhi Slips to Third Spot in 2023 Housing Market

In 2023, Mumbai maintained its stronghold as the leading housing market in India, witnessing a surge in demand that outpaced other major cities. Data from Anarock Research revealed that the Mumbai Metropolitan Region (MMR) experienced robust growth, with 153,870 housing units sold—a 40% increase compared to the 109,730 units sold in 2022. Mumbai also led in new launches, introducing 157,700 units, marking a significant 27% rise from the previous year.

The average price per square foot in Mumbai reached Rs 13,700 after a 15% appreciation from Rs 11,890 in 2022. Knight Frank India analysts attributed this growth to the confidence exhibited by Mumbai’s homebuyers, fueled by stable demand and positive sentiment. They highlighted a remarkable upswing in property registrations, with residential units constituting 80% of the overall registered properties.

Shishir Baijal, Chairman & Managing Director, Knight Frank India, emphasized the 2023 momentum in Mumbai’s real estate, citing rising income levels, better affordability, and a positive homeownership outlook. The market witnessed a 57% increase in the share of high-value property registrations, reflecting robustness.

In contrast, Delhi-NCR slipped to the third spot in 2023 as home sales saw a modest uptick of 3%, reaching 65,625 units, compared to 63,710 units in the previous year. The region recorded 36,735 new launches, lagging behind other major markets. Average price per sq.ft. in Delhi stood at Rs 5,800, indicating a 15% increase from Rs 5,025 in 2022.

Despite healthy sales, Delhi-NCR’s cautious approach to new supply contributed to a significant 23% annual reduction in unsold inventory stock. Pune emerged as the second-largest market after MMR in 2023, with 86,680 units sold and 83,625 units launched. Pune also surpassed Delhi in average price per sq.ft., reaching Rs 6,750, a 13% YoY increase.