In 2023, India's Real Estate Will Reach New Heights; Experts Expect Trend To Continue By 2024

India's 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.

Strong 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.

The market 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.

Sales of 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 residences.

What Industry Insiders Say

"According 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.

"In 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 appeal.

According to him, the demand for opulent real estate and vacation rentals is anticipated to continue growing through 2024.

Co-founder 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.

"The 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.

According to 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 sector's

"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 emphasises how important non-metropolitan markets are becoming, particularly for low-rise and planned designs.

According to 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 prospects.

"The 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.