The exceptional growth of Indian Real Estate Market in 2023 is very significant with regards to the resilience and a promising future. It offers a huge number of opportunities for the investors in different segments of the industry.
In a major real estate news, the real estate Market of India has shown an unprecedented growth in the year 2023. It performed more than the expectations of the analysts and set new records as well. The market has become a pot of opportunities for real estate investors be it domestic or international, these investments have helped the economy to gain new heights. The cash flow in the Indian Real Estate Increased to a staggering 5.1 Billion USD in 2023. The biggest chunk of this major inflow i.e. 40% went to land acquisitions. The major part of the investment was made by domestic developers, investing 42 % in the market. The international funds and investors remained a bit cautious while pumping money in the market. Although it was projected that the market will taper and capital inflow will decrease, the strategic investments ain residential sector and industrial plots pushed the market forward.
The market of factional ownership properties currently stands at 5.4 Billion USD will reach a whopping 8.9 Billion USD in 2025. This increase promises an unprecedented Compound Annual Growth Rate(CAGR) of 10.5 %. The retail investors will get access to A grade office properties, diversifying the portfolio without offending the regulatory framework of SEBI. The housing sector remained the focus of the investors leading the growth, the demand was further helped by regular demand, stable interest rates and strong GDP expansion. The major increase in demand is witnessed by mid and high priced residential properties.
Reflecting on the real estate landscape, Vineet Dawar, Sr. Vice President of Sales and Strategy at Elan Group, emphasized the sector’s resilience and growth in the face of challenges. The residential segment, particularly luxury housing, surpassed expectations, capturing the interest of both end-users and buyers.
Gurgaon, within the NCR region, emerged as a top choice, fueled by robust infrastructure development. Among Gurgaon’s micro-markets, the Dwarka Expressway shone as a preferred location, especially for residential properties. The real estate market in 2023 witnessed remarkable strides, with increased new launches and home sales. This positive trajectory is anticipated to continue in 2024, signifying a promising era for the Indian real estate sector.
A recent report by Knight Frank India also anticipated a rise of 63 % in the number of residential launches within the next 6 months. This has further increased the enthusiasm of the investors which will keep the growth intact in 2024. This kinds of numbers put a great amount of trust and courage in the minds of investors while investing in the Indian Real estate market which will further sustain the growth. This kind of positivity fuels the Indian Economy.
A study from the Anarock and CBRE South Asia Pvt Ltd’s. Has shown that there was a 151% YoY increase in sales especially in the Luxury Housing segment. The Delhi and NCR including Gurugram witnessed a high growth of 216% in the sales of ultra luxury properties. This trend has also helped in the increase of the trust of investors in the Indian Real estate Market.
The New Horizon Outlook 2024 report by Knight Frank brings positive news for Asia-Pacific real estate, covering commercial, residential, and capital markets. The forecast predicts a notable 43.7% rise in logistics supply, addressing the tight supply conditions. Despite this increase, average rent is projected to continue rising, although at a more moderate pace, thanks to persistent demand in the region. The report suggests a promising and balanced outlook for the real estate landscape in Asia-Pacific, fostering growth and stability in various sectors.
