Housing sales in India’s top seven property markets have risen to more than 1.61 lakh apartments in the first nine months of 2022, exceeding the annual sales performance since 2014.
Residential real estate sets new records in 2022, set for a buoyant 2023
India’s residential real estate segment witnessed stunning growth in 2022 with record-breaking numbers in sales, indicating improved buyers’ and investors’ sentiments. According to an industry report, the top 7 prime residential markets in India recorded the highest sales during the first half of financial year 2022-23 as compared to the last 10 years. The report also highlighted that premium and luxury housing are driving the growth of the housing segment in India.
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According to JLL, sales in India’s top seven property markets have risen to more than 1.61 lakh apartments in the first nine months of 2022, exceeding the annual sales performance since 2014. This year, the luxury housing segment stood out, with gated communities and smart townships dominating the preferred home segment. From January to June 2022, 25,680 luxury apartments priced over Rs 1.5 crore were sold across seven major cities, according to the data released by Anarock.
Commenting on the same, Amarjit Bakshi, CMD, Central Park, said, “2022 has been a remarkable year for India’s real estate sector following years of slump. The sector’s healthy growth graph and sustained momentum throughout the year show the strengthened market sentiments and confidence amongst investors and homebuyers. Moreover, the renewed focus on homeownership propelled the significant number of new launches in NCR this year. Gurugram has witnessed phenomenal growth in the realty market where housing sales registered a more than threefold increase between January and September 2022. The surge was witnessed owing to the increased housing demand across price points.”
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The CII-ANAROCK Consumer Sentiment Survey revealed that demand for housing among NRIs increased by 15-20% in the first nine months of 2022 compared to the same period in 2021. The report further states that around 20% of NRIs prefer to purchase luxurious residential properties in Delhi NCR.
Bakshi further added, “The Millennium City and its micro-markets, primarily Sohna, have emerged as shining spots for the residential market across categories. NRIs, UHNIs, and HNIs seeking high-end apartments, bungalows, villas, best-in-class hospitality, and scenic landscapes prefer to buy luxury properties in Gurugram as the Millennium City offers an unparalleled lifestyle and attractive returns.”
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Real estate experts estimate that the growing base of aspirational consumers and their lifestyle changes will drive demand for premium properties in the coming year. The emphasis is now on equating luxury living with a healthy and fulfilling life.
Siddharth Katyal, Group Director and Business Strategist, Omaxe Ltd, said, “The sustained growth momentum throughout the year set new records in housing sales and new launches. Consumers nowadays are more likely to own a home as it is considered a better investment than renting. The overall real estate sector, being a major backbone of the infrastructure sector, is currently booming. We believe that in the next five years, the demand for real estate infrastructure will outweigh the supply, and the more infrastructure we build, the more demand we will have. However, the development should be infrastructure and need-based. Also, there is a need for the government to ease the policies for promoters and developers. In addition, developers should be given an extended arm by the government so they can market compliant properties, have a streamlined approval process, and can be developed quickly.”
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This year, the affordable segment also got a significant boost with the growing awareness of homeownership and the government’s favourable affordable housing schemes. JLL predicts that plotted developments and independent floors will become more popular in the coming years due to changing buyer preferences.
Pradeep Aggarwal, Founder and Chairman, Signature Global (India) Ltd, said, “The realty market has rebounded with developers reporting a surge in property demand. In terms of segmental growth, affordable housing has been a leading force, with the demand for mid and affordable segments steadily improving, backed by the renewed confidence of buyers/developers. Also, independent floors are gaining traction among the middle class because of their greater affordability and space. The segment’s growth can also be attributed to the Pradhan Mantri Awas Yojna, which aims to complete approximately 80 lakh houses by 2023. Also, affordable housing finance will grow the fastest, with mortgage penetration expected to double to 8-10% over the next few years, driving further growth.”
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The hybrid work model has encouraged many MNCs and startups to set up offices in non-metro cities, resulting in a substantial increase in employment opportunities. Thus, such cities are witnessing an influx of job seekers, which has triggered a rise in residential real estate demand. Buyers are increasingly looking for upscale homes in Tier 2 cities like Tri-city, Ludhiana, Amritsar, Indore, Lucknow, etc., because of the affordability of homes in such cities as well as the ongoing social and physical infrastructure developments that bring these cities on par with metropolitan areas.
SK Narvar, Chairman, Trident Realty, said, “Positive sentiments among both buyers and developers have sustained the country’s real estate sector throughout the year. Tier 2 & 3 cities have emerged as new big realty markets in 2022 and we believe that the developing cities hold immense potential in fulfilling the demands of homebuyers. The working population is now keen to relocate to their hometowns in Tier 2 cities for a more peaceful lifestyle amid the hybrid work (Work from anywhere) model. The residential and rental demand in Tier 2 cities like Tri-city (Chandigarh-Panchkula-Mohali), Ludhiana, Dehradun, Panipat, Sonipat, Lucknow, etc., have increased significantly this year. In response to the strengthening of buyer’s confidence, industry players are also exploring smaller cities in line with demand.”
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A positive outlook is projected for the residential real estate segment in 2023. Experts are fairly enthusiastic about the prospects of residential real estate, which will be backed by favourable government policies and sound economic growth.
