These trends depict a vibrant and evolving landscape of homebuyer preferences and expectations in India’s residential real estate market for 2024.
Mumbai, Pune and Hyderabad will be the driving forces in the Indian residential real estate sector’s anticipated continued growth in 2024, according to Housing.com. Its latest report highlights these cities as the epicentres of intensified market activity, poised to significantly shape the sector’s narrative in the upcoming months.
The IRIS index (Buy) from Housing.com, a key indicator of future demand in India’s major cities, is trending at 131 points in December 2023, achieving 83 percent of its historical peak. This trend is indicative of a positive market outlook for the forthcoming months.
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2024 Trends
Increased Demand for Larger Homes: The trend towards larger home configurations, especially 3+BHK apartments, is gaining momentum. Search queries for these spacious layouts have escalated six-fold year-over-year in 2023, indicating a shift towards larger living spaces.
Luxury Living Gains Traction: High-End Apartments in the Spotlight for 2024: The demand for luxury apartments, particularly in the INR 1-2 crore bracket and above, is expected to soar in 2024. This segment has seen a remarkable 7.5 times increase in online property search volume year-over-year in 2023.
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Commenting on the same, Dhruv Agarwala, Group CEO, Housing.com, PropTiger.com, & Makaan.com, said, “2023 stands as a landmark year in the Indian real estate sector, characterised by exceptional growth and resilience. Despite challenges like elevated interest rates and global uncertainties, the industry has demonstrated robustness. The RBI’s decision to pause rate hikes in April, coupled with pent-up post-pandemic demand, has significantly bolstered buyer confidence. A noticeable uptick in residential demand is evident across various market segments, heralding a promising 2024.”
Ankita Sood, Head of Research, Housing.com, PropTiger.com, & Makaan.com, said, “2024 is well poised for taking the sector forward. We expect good momentum in both property buying and renting as our IRIS index which tracks upcoming demand, estimates northbound movement. Property prices surged 15-20% from pre-COVID levels and monthly rents saw a spike of 25-50% in key areas of cities driven by the service industry. We see that growth for 2024 will not just be limited to the metros, but be driven by the Tier-2 cities as newfound economic and realty epicentres.”
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Localities to watch-out for in 2024: Localities such as Greater Noida West (Greater Noida), Mira Road East, Malad West (Mumbai), Kondapur (Hyderabad), and Whitefield (Bengaluru) took the highest share in online high-intent home buying activity on Housing.com’s portal.
Rental Market and Emerging Trends in Tier II Cities: Online search trends indicate that the rental market is predicted to experience significant growth in 2024, especially in Gurugram, Mumbai, Bengaluru, and Pune, driven by the resumption of back to office work policies. Rent appreciation in these cities’ key areas has ranged from 25 to 50 percent above pre-pandemic levels in 2023.
Additionally, Tier II cities such as Jaipur, Indore, Lucknow, Mohali, and Vadodara are emerging as substantial markets for residential activity, as indicated by their highest year-on-year growth in online property search volume for buying.
Significance of Gated Communities and Consumer Sentiment: Gated communities with ready-to-move-in properties are expected to play a crucial role in home purchases in 2024. Further, according to the Consumer Sentiment Outlook, a majority of homebuyers also show a preference for direct purchases from developers, indicating a renewed trust towards new property developments as compared to resale properties.
In conclusion, these trends depict a vibrant and evolving landscape of homebuyer preferences and expectations in India’s residential real estate market for 2024. This comprehensive analysis offers valuable insights for both homebuyers and developers, enabling well-informed decision-making in a dynamic market environment.
