India’s real estate sector, which picked up last year after a 2-year halt due to the pandemic, continued to break records in the year 2023 on the back of strong demand and ample supply. The year saw significant growth in new launches as well as sales across segments.
“The residential market is experiencing a strong demand and ample supply, indicating its resurgence and continued growth this year. Residential sales in first nine months of 2023 reached 196,227 units, which is 91% of the total sales in 2022,” according to a report by real estate consultant JLL.
The luxury housing segment saw especially high growth. Mid segment price category (Rs 50 – 75 lakh) dominated sales during January-September 2023. However, share of premium segment (above Rs 1.50 crore) has increased from 18 per cent in 9M 2022 to 22 per cent in 9M 2023. Delhi NCR and Mumbai have recorded maximum sales in first nine months of 2023 in the premium segment.
Luxury segment (priced above INR 3 crore) sales went up by 83% from 8,013 units in 9M 2022 to 14,627 in 9M 2023. With homebuyers upgrading to bigger sized homes, developers are launching such projects taking cognisance of this demand trend.
What Industry Players Say
Pradeep Aggarwal, founder & chairman of Signature Global (India) Ltd, said, “As the final curtain descends in 2023, the real estate industry witnesses an impressive surge, with Gurugram’s mid-housing sector taking center stage. The year-end reflection unveils a year-on-year upswing, showcasing a strategic prowess in meeting the escalating demand for affordable yet quality residences.”
Aditya Khushwaha, CEO & director of Axis Ecorp, said, “In 2023, the Indian real estate sector experienced significant prosperity, particularly in the luxury real estate segment, witnessing a remarkable 97 per cent surge in luxury home sales. This underscores the resilience and allure of the high-end real estate market.”
As we look forward to 2024, the demand for luxury real estate and holiday homes is expected to sustain its upward trajectory, he said.
Shantanu Gambhir, co-founder and MD, Rise Infraventures limited, said, “In 2023, Gurugram’s real estate witnessed a remarkable price appreciation, outshining Bengaluru and Noida. Despite a surge in property prices, the city experienced a staggering 28.9 per cent quarter-on-quarter growth in demand, surpassing the national average. We foresee this trend to continue in 2024 as well.”
Mohit Goel, MD of Omaxe Group, said, “The year 2023 marked a remarkable stride in the realty sector across Tier 1, 2, and 3 cities, and the promising trajectory persists for 2024. Areas like Dwarka, Faridabad and cities such as Lucknow, Chandigarh etc emerged as pivotal hubs for upscale residential and commercial developments, amplifying the allure of these locales. The year ahead anticipates an elevation in the real estate landscape, promising substantial returns on investment and robust job creation.”
He said government policies have notably favoured this growth, fuelling new launches and fostering demand, aligning consumer patterns with evolving supply dynamics. The consumer demand across main cities and tier 2 & 3 cities mirrors a distinct trend towards aspirational living spaces, shaping the real estate sector’s landscape.
Radheecka Rakesh Garg, director of Rajdarbar Realty, said, “In 2023, real estate developers strategically expanded into tier-2 and tier-3 cities, acquiring 1,461 acres of land, primarily for residential developments. This trend highlights the increasing significance of non-metro markets, especially in low-rise and plotted formats.”
Garg said that as developers explore untapped growth areas, 2024 will witness further dynamism in the real estate landscape, fulfilling the aspirations of India’s smaller cities.
Nayan Raheja of Raheja Developers said, “The real estate sector in India experienced unprecedented growth in 2023, notably in the luxury housing segment. The industry responded to evolving urban tastes with a focus on luxury and larger living spaces.”
Delhi-NCR emerged as a hotspot, witnessing a remarkable 216 per cent growth in luxury housing sales. Positive economic indicators and increased NRI investments fuelled this surge. There will be no letting back in the premium housing segment in 2024, Raheja added.
Comments
0 comment