In 2023, India's Real Estate Will Reach New Heights; Experts Expect Trend To Continue By 2024
By Bricksnwall | 2023-12-27
real estate market, which resumed operations last year following a two-year
hiatus because of the epidemic, broke records in 2023 as a result of robust
supply and high demand. Sales across all sectors and new releases both
experienced notable rises throughout the year.
demand and plentiful supply in the residential market this year point to its
revival and sustained expansion. According to a survey by real estate
consultancy JLL, residential sales in the first nine months of 2023 reached
196,227 units, or 91% of the total sales in 2022.
for luxury homes expanded at an exceptionally rapid rate. Sales between January
and September of 2023 were led by the mid-segment price group (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, Delhi NCR and Mumbai saw the
most sales in the first nine months of 2023.
units in the luxury segment (those priced over INR 3 crore) increased by 83%
between 9M 2022 and 9M 2023, from 8,013 to 14,627. Developers are constructing
these projects in response to the trend of homebuyers upgrading to larger
What Industry Insiders Say
to Pradeep Aggarwal, founder and chairman of Signature, "as the final
curtain descends in 2023, the real estate industry witnesses an impressive
surge, with Gurugram's mid-housing sector taking centre stage." Global
(India) Ltd. The year-end evaluation 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.
2023, the Indian real estate sector experienced significant prosperity,
particularly in the luxury real estate segment, witnessing a remarkable 97%
surge in luxury home sales," stated Aditya Khushwaha, CEO and director of
Axis Ecorp. This underlines the luxury real estate market's tenacity and
him, the demand for opulent real estate and vacation rentals is anticipated to
continue growing through 2024.
and MD of Rise Infraventures Limited Shantanu Gambhir stated, "Gurgaon's
real estate saw a remarkable price appreciation in 2023, outshining Bengaluru
and Noida." The city saw a startling 28.9% quarter-over-quarter gain in
demand, above the national average, despite a spike in real estate costs. We
anticipate that this tendency will carry over into 2024.
real estate sector across Tier 1, 2, and 3 cities marked a remarkable stride in
2023, and the promising trajectory persists for 2024," stated Mohit Goel,
MD of Omaxe Group. Suburban areas like Dwarka and Faridabad, along with towns
like Lucknow and Chandigarh, became important centres for high-end residential
and commercial projects, adding to the appeal of these places. The real estate
market is expected to improve in the upcoming year, with significant returns on
investment and strong job growth.
him, government initiatives have significantly aided in this expansion by
stimulating demand, igniting new product introductions, and coordinating
consumer behaviour with shifting supply dynamics. Demand from consumers in
major cities as well as tier 2 and tier 3 cities reflects a clear trend towards
aspirational living environments, which is influencing the real estate
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
emphasises how important non-metropolitan markets are becoming, particularly
for low-rise and planned designs.
Garg, 2024 would see more vitality in the real estate market, satisfying the
hopes of India's smaller cities as developers go into unexplored development
real estate sector in India experienced unprecedented growth in 2023,
particularly in the luxury housing segment," stated Nayan Raheja of Raheja
Developers. The business shifted its focus to luxury and greater living spaces
in response to changing urban trends.
Delhi-NCR became a hotspot as sales of luxury homes increased by an astounding 216%. This growth was driven by improved economic indicators and a rise in NRI investments. In 2024, Raheja stated, there won't be any letting back in the upscale home market.