Due to high demand and plentiful supply, India’s real estate market, which resumed last year following a two-year hiatus caused by the pandemic, broke records in 2023. Sales across all segments and new launches experienced notable growth in the year.
Strong demand and plentiful supply in the residential market during 2017 point to its revival and sustained growth. Ninety-one percent of all sales in 2022 were residential, with 196,227 units sold in the first nine months of 2023, according to a study released by real estate consultant JLL.
The market for luxury homes expanded at a rapid rate. Sales between January and September of 2023 by prices in the mid-segment (Rs 50-75 lakh). Nonetheless, the premium segment’s share (above Rs 1.50 crore) grew from 18% in 9M 2022 to 22% in 9M 2023. In the premium segment, the first nine months of 2023 saw the highest sales in Delhi, NCR, and Mumbai.
What Industry Insiders Have to Say
“As the final curtain descends in 2023, the real estate industry witnesses an impressive surge, with Gurugram’s mid-housing sector taking center stage,” stated Pradeep Aggarwal, founder and chairman of Signature Global (India) Ltd. The year-end reflection reveals an upward trend from year to year and demonstrates a strategic ability to satisfy the growing demand for reasonably priced yet high-quality homes.”
“In 2023, the Indian real estate sector experienced significant prosperity, particularly in the luxury real estate segment, witnessing a remarkable 97 percent surge in luxury home sales,” stated Aditiya Khushwaha, CEO and director of Axis Ecorp. It emphasizes the luxury real estate market’s tenacity and appeal.”
He believes that through 2024, there will still be a growing demand for luxurious real estate and vacation rentals.
Rise Infraventures Limited co-founder and MD Shantanu Gambhir, “Gurgaon’s real estate saw a remarkable price appreciation in 2023, outshining Bengaluru and Noida.” Despite a surge in real estate prices, the city saw a startling 28.9 percent increase in demand quarter over quarter, surpassing the national average. We anticipate that this trend will carry over into 2024.”
The real estate market in Tier 1, 2, and 3 cities made significant progress in 2023, and this promising trend ought to continue through 2024, according to Mohit Goel, MD of Omaxe Group. Cities like Lucknow, Chandigarh, and Dwarka, as well as other areas, became important centers for high-end residential and commercial developments, adding to the appeal of these places. The year ahead anticipates an elevation in the real estate landscape, promising substantial returns on investment and robust job creation.”
He says government policies have played a role in this growth by driving demand, launching new products, and aligning consumer behavior with changing supply dynamics. He also says that demand from cities alongside tier 2 and tier 3 towns shows how aspirational living spaces are becoming increasingly popular, thus changing the real estate market.
“In 2023, real estate developers strategically expanded into tier-2 and tier-3 cities, acquiring 1,461 acres of land, primarily for residential developments,” stated Radheecka Rakesh Garg, director of Rajdarbar Realty. This pattern emphasizes how important non-metropolitan markets are becoming, particularly for low-rise and plotted formats.”
According to Garg, 2024 will see even more dynamism in the real estate market, satisfying the hopes of India’s smaller cities as developers look into unexplored growth areas.
The real estate market in India saw exceptional growth in 2023, particularly in the luxury home market, according to Nayan Raheja of Raheja Developers. Luxury and large living spaces were significant responses to changing urban tastes.
With a startling 216 percent increase in sales of luxury homes, Delhi-NCR became a hotspot. Positive economic indicators drove this spike in NRI investments. Raheja went on to say that in 2024, there will be no letting back in the upscale housing market.