NEW DELHI: The Indian real estate sector saw a comeback in the year 2023 with mid-segment and luxury-segment leading the way. Approximately 4,76,530 units were sold in 2023 against 3,64,870 units in 2022 across the top seven cities i.e. Bengaluru, Chennai, Delhi-NCR, Kolkata, Hyderabad, Mumbai Metropolitan Region (MMR) and Pune, according to the data by Anarock.
Real estate stakeholders expects the momentum to continue in 2024 and are predicting a rise in real estate prices across segments. Here is what experts said:
Niranjan Hiranandani, chairman, NAREDCO National said, “Since India has a housing deficit, the demand for sustainable housing will remain buoyant. A strong pipeline of supplies is being developed. There has been a surge in real estate demand in metro and tier cities due to rising disposable incomes and better employment opportunities among Indian demographics. For 2024, the surge in demand will result in a 10-12% increase in property prices, along with a snowball distribution of commercial and retail space.”
Rakesh Reddy, director, Aparna Constructions said, “We anticipate a 10 percent rise in average residential property prices in 2024, reflecting the sustained growth and resilience of the real estate market. Noteworthy is the shift in housing preferences, with a leaning towards more spacious properties.”
“While we anticipate a moderation in price appreciation compared to the previous year, there remains a steadfast expectation of robust price increases. Although not reaching the levels witnessed in the preceding year, the market is poised for steady growth, affirming the enduring strength of both supply and demand dynamics, said Ankur Gupta, JMD, Ashiana Housing.
“In 2023, the Indian real estate landscape not only weathered global economic challenges but emerged stronger, with luxurious and premium housing segments leading the way,” said Venkatesh Gopalakrishnan, MD & CEO, Shapoorji Pallonji Real Estate (SPRE).
“Post-pandemic, homebuyers are increasingly inclined towards homeownership, seeking secure, sustainable, and multi-functional living spaces. This shift in preference has led to an uptick in home sales of upscale residential projects in India as today’s buyers prioritize homes that support a better post-pandemic way of living and are willing to pay a premium for quality residential developments. As a result, group housing projects in the mid-premium, premium-plus, and luxury segment are doing well,” said Gaurav Pandey, MD & CEO, Godrej Properties.
Pritam Chivukula, vice president, CREDAI MCHI added, “A significant shift towards sustainable living is reshaping the very foundations of residential architecture. From the materials used in construction to the incorporation of eco-friendly technologies, the emphasis is on reducing the environmental footprint of homes. Prospective homebuyers, driven by a desire for more significant living spaces, enhanced amenities, and attractive pricing models, are poised to keep the market vibrant.”
