In 2023, Indias real estate market attained significant momentum, primarily fuelled by several positive developments. The Reserve Bank of Indias decision to maintain stable interest rates was a major catalyst. It empowered prospective buyers to confidently invest in their dream projects, further boosting the realty sector and facilitating an upward trajectory. The year marked a turning point as aspiring homeowners capitalized on favourable economic conditions and contributed in a big way to creating a dynamic and flourishing real estate landscape in India.
The Evolution of Indian Real Estate: Navigating 2024 and Beyond
Yukti Nagpal, Director, of Gulshan Group 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% growth in luxury housing sales. Positive economic indicators and increased NRI investments fueled this surge. There will be no looking back for the premium housing segment in 2024.”
“After the COVID-19 pandemic, the year 2023 has been exceptionally good for homebuyers and real estate developers. Post the pandemic, when people felt the need for larger homes, their search for homes in Noida, Greater Noida, and the NCR region came to an end. Developers have provided people with splendid homes that meet their expectations. This is why the unsold inventory in the NCR region, which remained during the pandemic, has become zero in the year 2023. Expectations are high that the coming year, 2024, will also be fantastic. It is hoped that not only 2024 but the next five years will be excellent for real estate,” said Sanjay Sharma, Director, SKA Group.
“Indias real estate market experienced a boom in 2023. Noida has witnessed the leasing of more than 10 million square feet of office space from 2020 till the third quarter of 2023, establishing it as a prominent commercial destination. The current year brought a series of favorable factors, including steady Repo rates, an increasing emphasis on infrastructure, and the availability of state-of-the-art projects, strong connectivity, and rising demand. The retail segment also soared high as compared to 2022, inviting International brands. We anticipate a similar pattern in 2024 with a sustained balance between the supply and demand of projects,” Mr. Sanchit Bhutani, MD, Group 108.
Surender Kaushik, Managing Director, Aryan Realty Infratech Pvt. Ltd. said,“2023 marked an unparalleled surge in Indias real estate, particularly in luxury housing. Responding to changing urban preferences, the industry prioritized larger living spaces and luxury. Delhi-NCR stood out with an astounding 216% growth in luxury housing sales, propelled by economic optimism and heightened NRI investments. The momentum in the premium housing sector shows no signs of slowing down as we move into 2024.“
Rajesh K. Saraf, Managing Director – Axiom Landbase Pvt. Ltd. said, “Gurugram’s commercial real estate sector is poised for a significant upswing in 2024. The city’s status as a corporate hub is expected to attract more businesses, leading to an increased demand for office spaces. The development of business parks and coworking spaces is likely to contribute to the city’s economic growth and fuel the demand for commercial real estate. The focus on affordable housing initiatives is anticipated to continue in 2024, driven by government policies and developers recognizing the need for accessible housing options. This trend is likely to make homeownership a reality for a larger segment of the population, fostering a more inclusive real estate market. In response to the growing awareness of environmental concerns, real estate developers in Gurugram are expected to prioritize sustainability and green spaces in their projects. Expect to see more eco-friendly designs, energy-efficient features, and an emphasis on creating environments that promote well-being.“
Ankit Kansal, Managing Director of Axon Developer said, “2024 will be an eventful year for Indian real estate, as the market will soar and reach its peak, after a period of sustained growth in 2022 & 23. The growth in the market will be backed by healthy structural parameters such as an upbeat economic outlook, a higher rate of urbanization, rapid investments in infrastructure, and stable lending rates. Due to global economic turmoil, the interest of the investor fraternity will also rise sharply towards tangible assets such as real estate. There will be a visible trend of portfolio diversification and making data-backed decisions. 2024 will also see the idea of sustainable real estate moving from soundbites to realities. Both developers and homebuyers will embrace green technologies and community living alongside taking a more holistic approach.”
In tandem with residential and commercial realty, second homes, holiday homes, and other related assets will see a jump in demand. The idea of staying close to nature and giving more attention to health & wellness is becoming popular. Big developers are now entering the space, which will further give buying boost to the segment, which is already growing at a CAGR of 22- 25%.