560,000 residential units expected to be completed across India's top cities in 2023

The residential real estate sector in India is poised to see a historic surge in project completions in 2023, building on a trend set in 2022. This increase in completions is expected due to stringent guidelines enforced by RERA that mandate developers to adhere to pre-decided timelines, a measure aimed at minimizing the historical issue of project delays that have caused distress for homebuyers.

Santhosh Kumar, Vice Chairman of ANAROCK Group, reports, “We are expecting a 39% increase in deliveries from last year, with approximately 560,000 homes slated for delivery across India's seven leading cities in 2023. This marks an important milestone in the Indian residential real estate market as it surpasses the half-million annual completions mark. A remarkable jump from a mere 200,000 units in 2017 to an expected 2.8 times that number in 2023."

Leading the expected completions is the NCR, with roughly 170,000 units or 30% of the total deliveries anticipated in 2023, a significant 97% increase from the previous year. The Mumbai Metropolitan Region (MMR) comes in second, accounting for a 24% share, while Hyderabad's share stands at 4% but represents a tremendous 104% increase over 2022.

Several factors are driving developers to meet their project completion targets:

Enhanced sales volume leading to improved cash flows, allowing developers to prioritize project completions.
Rising input costs necessitating the timely completion of projects to manage these costs.
Alternative Investment Funds (AIFs) such as SWAMIH Fund, which since 2019, has approved 130 projects worth INR 12,000 crores, leading to the completion of 20,557 housing units.
Tech-driven construction techniques adopted by approximately 66% of Indian construction companies, prioritizing digital transformation, enhancing efficiency and reducing costs.

Despite this buoyant forecast, potential hurdles remain, including global economic uncertainties and rampant inflation, which could lead to significant cost increases. However, given the remarkable resilience shown by India's leading real estate developers in the past few years, the prospect of achieving this new project completion record remains promising.

In conclusion, the year 2023 marks a potential turning point for the Indian residential real estate sector. If these predictions hold true, it will reflect the industry's robust growth and resilience, setting a new benchmark in project completions and making a significant contribution to the Indian economy.

This story was first published by ET Realty

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560,000 residential units expected to be completed across India's top cities in 2023

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