Real estate in India to scale new heights in 2024: Experts

Thanks to policy reforms, buoyant consumer sentiment, increasing disposable income, and increasing demand for larger homes, India’s real estate sector experienced phenomenal growth in the year 2023, outperforming all previous years and setting new records. For example, according to Anarock, housing sales in the country’s top seven cities – including Mumbai, New Delhi, Pune, and NCR – reached a new high in 2023, with nearly 4.76 lakh housing units sold in 2023 compared to 3.64 lakh units in 2022 – a 31% year-on-year growth. New launches across the top seven cities increased by 25% in 2023, from around 3.57 lakh units in 2022 to around 4.45 lakh units in 2023.

Real estate, particularly the residential segment, had a strong and resilient year in 2023, according to Yashank Wasson, MD, of Royal Green Realty. The global economy recovered from the effects of the pandemic, leading to an increase in demand for residential properties due to low-interest rates and the desire for larger homes. However, there were also issues such as increasing construction costs and disruptions to supply chains that affected the overall growth of the industry.

The year will also be remembered for the good consumer sentiment and the government support with the stable interest rates which further stimulated the growth of the Indian real estate sector. Consumers are looking for luxury and modern spaces outside the metros which forced the developers to react with offerings that meet the expectations of the consumers. The strategic expansion of the real estate industry outside the metros in 2023 showed that the real estate industry is flexible and adaptable. The coming year will bring even more exciting developments in the real estate industry. Cities like Jaipur, Udaipur, Chandigarh, Goa, Surat, Vadodara, etc. are emerging with their own economic identities which offer a lot of opportunities for growth and development.

In the first half of 2023, the sales across all price bands, including luxury homes, exceeded the numbers of 2022, defying all expectations regarding the likely negative impact of interest rate hikes on home loans and the surge in property values. Gurugram continues to be one of the most promising markets in terms of sales and capital appreciation. The rapid pace of infrastructure development, including the Central Peripheral Road and Dwarka expressway, has played a major role in this.

Fractional ownership has been gaining popularity in recent years due to several factors such as the increasing acceptance of the concept, increasing property prices, and the growing interest of affluent families in investing in vacation properties. The latest guidelines issued by the Securities and Exchange Board of India (SEBI) on fractional ownership (FPO) and small real estate investment trusts (REITs) have further strengthened the foundation for FPO growth in 2024. The FPO market has significant potential and is expected to grow exponentially in the coming years. The changing regulatory landscape and the growing awareness of the benefits of fractional ownership make FPO an attractive option for investors and end users alike.

Luxury home sales in India increased by 97% in 2023, demonstrating the resilience and attraction of the luxury real estate market. Looking ahead to 2024, luxury real estate and luxury holiday homes demand is expected to continue to grow. Home buyers are looking for luxury combined with world-class design and décor for a luxurious lifestyle. The discerning taste of the Non-Resident Realtors (NRI) market also contributes to the industry’s growth.

The demand for high-end flats from Rs 2 crore up to Rs 100 crore has been skyrocketing. This sudden demand has forced builders to sell entire projects in a short space of time. Developers have had to come up with creative solutions to handle the high number of expressions of interest in comparison to the number of flats available. While the luxury segment has been shining brightly, it’s important to note that the low-cost segment and the mid-income segment have remained very active and have contributed to the overall growth in housing sales. Looking ahead to next year, we expect sustained demand, possible price stabilization, and a positive outlook across the spectrum of housing segments.

Disclaimer: The views expressed above are for informational purposes only based on industry reports and related news stories. PropertyPistol does not guarantee the accuracy, completeness, or reliability of the information and shall not be held responsible for any action taken based on the published information.