The upward trajectory in 2023

The Indian residential market witnessed an unprecedented growth in the year 2023. Research by ANAROCK property consultants specify that more than 349,000 housing units were sold in the top 7 metros of the county within the first nine months of 2023, a record figure. Anuj Puri, Chairman, ANAROCK Group, indicated that the trend continued on to Q3 of 2023 as the period recorded a new sales hit of approximately 120,300 units. The appetite for home ownership continues to soar high and industry experts predict that this trend would continue in the year 2024.

Reasons for the boom

Investment experts have always advised Real estate to be the safest and the most lucrative long term investment option. However, it has also emerged as the most resilient and rewarding investment considering the economic uncertainty, a fact that is acknowledged by all investment experts alike. While speaking to Outlook Money, Gunjan Goel, Director of Goel Ganga Developments remarked, “Economic uncertainty looms large as wе navigatе thе investing environment in 2024. Successful real estаtе investors, on thе othеr hand, recognize thе value of resilience and adaptation. Diversifying portfolios, activеly monitoring global events, and making data-driven dеcisions are critical in managing market volatility concerns.”

While evaluating the dependability of the investment and the promising ROI investors have uniformly chosen real estate as the most trusted one and this upward trend can be largely attributed to the growing realization of the investors about the merits of real estate investment.

The road ahead 

• Housing to remain affordable – According to a report in Business Outlook India a study by Concorde on the future and trends of real estate in India revealed that from the year 2023 to 2028, the sector is expected to grow at a whopping rate (CAFR) of 9.2 per cent. The road ahead looks promising and with the major metros like Chennai, Hyderabad, Bangalore leading this surge. A recent report titled JLL Home Purchase Affordability Index, indicates that the residential real estate would be within affordable limits and would rise to a three-year high in 2024. The repo rate cut is expected to be within the 60-80 bps range keeping the rate of homes within an affordable range for the buyers.
• Technology to a Play Major Role – LC Mittal, Director of Motia Group recently remarked that thе rеal еstatе sеctor would continue to undеrgo major transition boosted by technology which would greatly help the real estate investors in a big way in 2024. Technology aided developments like Virtual propеrty tours, blockchain transactions, and remote property management would transform the way real estate purchase and sales happen.
• Sustainability – Major real estate developers in the country have realised that green building initiatives and sustainable measures should be the way forward in the industry. Major construction projects by these developers in leading metros like Chennai, Bangalore have incorporated sustainability, Net zero building principles and numerous green initiatives, thereby developing premium Gated community homes that are energy efficient, environment friendly and promote sustainable living. Such initiatives will grow in the coming years as both the buyers and developers are more environmentally conscious.

The overwhelming prediction is that the investment in real estate would continue to witness the upward surge and get bigger in the year 2024. S&P Global Ratings pronounced that India’s economic growth prospects should remain strong over the medium term, with GDP expanding 6-7.1 per cent annually in fiscal years 2024-2026. With the interest rates expected to be stable offering further impetus to this sector the market looks very promising for the investor in the upcoming year.