Real estate news: India’s real estate sector is witnessing a significant boom, as evident from the latest GDP data showcasing the construction sector’s robust growth of 13.3 per cent in the July-September quarter, the highest in five quarters. This surge has propelled India to a 7.6 per cent expansion rate, making it one of the fastest-growing major economies globally. This comes despite economic challenges faced by Western economies and China‘s property sector debt crisis, Reuters reported.
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The boom, creating millions of jobs, is driven by rising incomes, severe housing shortages in major cities, and strong population growth. India’s urban housing deficit, estimated at about 19 million units last year, is projected to double by 2030.
Economist Sunil Sinha from India Ratings and Research predicts the construction sector’s continued contribution to economic growth in the coming quarters. Real estate developers are optimistic, with Sanjeev Jain, managing director at Parsvnath Developers, suggesting the housing market could thrive for another three to four years.
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Reuters reported that Anarock data reveals a 36 per cent surge in home sales in India’s top seven cities in the July-September quarter year-over-year, reaching over 112,000 units, despite an 8-18 per cent increase in housing prices. Additionally, there was a 24 per cent rise in new residential projects.
Demand remains strong in cities like Mumbai, even with interest rate hikes. Jayesh Rathod, director of Mumbai-based Guardian Real Estate Advisory, reports a significant increase in flat sales compared to last year.
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Salary hikes in major cities are underpinning this demand, with sectors like e-commerce and healthcare witnessing over 10% increases for the second consecutive year.
Housing demand is also picking up in smaller cities in states like Tamil Nadu, Karnataka, and Gujarat. The government’s focus on affordable housing is encouraging construction in smaller towns and cities.
Reflecting these trends, the Nifty realty index has risen by approximately 67 per cent year to date, with companies like Prestige Estates Projects, DLF, and Godrej Properties seeing substantial share value increases.
