The Indian real estate sector, reinvigorated last year after a two-year pandemic-induced hiatus, has not just rebounded but set unprecedented records in 2023. Fueled by robust demand and an abundance of supply, the market witnessed substantial growth across various segments.
Resurgence in Residential Real Estate
The residential market, showcasing resilience and sustained growth, experienced a surge in demand and supply throughout 2023. A report by real estate consultant JLL reveals that residential sales in the first nine months of 2023 reached an impressive 196,227 units, constituting 91% of the total sales in 2022.
Luxury Housing Takes Center Stage
Intriguingly, the luxury housing segment exhibited remarkable growth, with the mid-segment (Rs 50 – 75 lakh) dominating sales in January-September 2023. Notably, the premium segment (above Rs 1.50 crore) expanded its market share from 18% in 9M 2022 to 22% in 9M 2023. Delhi NCR and Mumbai emerged as leaders in premium segment sales for the first nine months of 2023.
Luxury segment sales, priced above INR 3 crore, soared by an impressive 83%, reflecting a shift as homebuyers opt for more spacious residences. This trend has prompted developers to launch projects aligning with the evolving demands of consumers.
Industry Insights
Pradeep Aggarwal, Founder and chairman of Signature Global (India) Ltd, emphasizes the impressive surge in Gurugram’s mid-housing sector, meeting the escalating demand for affordable yet quality residences.
Aditya Khushwaha, CEO and director of Axis Ecorp highlights a significant 97% surge in luxury home sales in 2023, showcasing the resilience and allure of the high-end real estate market.
Projections for 2024
Looking ahead to 2024, Shantanu Gambhir, Co-founder and MD of Rise Infraventures Limited, anticipates sustained growth in Gurugram’s real estate, outshining other cities. The upward trajectory in property prices is expected to continue, with a 28.9% quarter-on-quarter growth in demand, surpassing the national average.
Mohit Goel, MD of Omaxe Group, emphasizes the remarkable stride in the realty sector across Tier 1, 2, and 3 cities, anticipating substantial returns on investment and robust job creation in 2024. Government policies favoring growth have played a pivotal role in fueling new launches and aligning consumer patterns with evolving supply dynamics.
Expansion into Tier-2 and Tier-3 Cities
Radheecka Rakesh Garg, Director of Rajdarbar Realty, notes strategic expansions into tier-2 and tier-3 cities in 2023, acquiring 1,461 acres of land primarily for residential developments. This trend underscores the growing importance of non-metro markets, especially in low-rise and plotted formats.
Nayan Raheja of Raheja Developers acknowledges the unprecedented growth in 2023, particularly in the luxury housing segment. Delhi-NCR emerged as a hotspot, witnessing a remarkable 216% growth in luxury housing sales, fueled by positive economic indicators and increased NRI investments. The momentum in the premium housing segment is expected to persist in 2024, reflecting evolving urban tastes with a focus on luxury and larger living spaces.
In conclusion, the Indian real estate market’s dynamic landscape in 2023 sets the stage for further growth and diversification in 2024. As developers tap into emerging trends and untapped growth areas, the sector is poised to fulfill the aspirations of India’s smaller cities, making it an exciting time for both investors and homebuyers.
Frequently Asked Questions (FAQ’s)
Ans: The growth in India’s real estate sector in 2023 can be attributed to a combination of factors, including a rebound from the pandemic-induced slowdown, strong demand, and an ample supply of properties across various segments.
Ans: Looking ahead to 2024, industry leaders like Shantanu Gambhir of Rise Infraventures anticipate sustained growth, especially in Gurugram. Positive economic indicators increased NRI investments, and government policies favoring growth are expected to continue driving the upward trajectory.
