In the real estate industry, increased sales and rising demand are stirring things up; in 2024, the property rush will not abate

 In the real estate industry, increased sales and rising demand are stirring things up; in 2024, the property rush will not abate

In the real estate industry, increased sales and rising demand are stirring things up; in 2024, the property rush will not abate

Experts in the market are certain that, despite slower growth, demand would continue to rise in 2024 as a result of anticipated increases in GDP and a drop in house loan interest rates.

Despite a spike in costs and the highest interest rates in six years, house buyers in India negotiated agreements that caused the country's housing industry to defy logic and achieve all-time high sales this year.

Experts in the market are certain that, despite slower growth, demand would continue to rise in 2024 as a result of anticipated increases in GDP and a drop in house loan interest rates.

Following the Covid epidemic, the real estate market saw record sales of residential properties in terms of both volume and value. Data indicates that customers are becoming more and more receptive to the notion of house ownership.

RERA's increased regulatory monitoring, which drove doubtful developers out of the real estate market, contributed to an increase in buyer trust. Moreover, bankruptcy legislation has contributed to the weeding out of defaulter builders.

Housing sales in the main (fresh sales) marketplaces of the top seven cities, including the Mumbai Metropolitan Region and Delhi-NCR (National Capital Region), are predicted to rise by 30% this year to a record 4.74 lakh units, according to real estate consultancy Anarock. (MMR), Hyderabad, Pune, Bengaluru, Chennai, and Kolkata.

Due to rising ticket prices, residential property transactions have a value of Rs 4.5 lakh crore.

Following almost a decade of stagnation, housing prices started to rise last year and have increased by an average of 14% this year, luring investors back into the primary residential market.

"A significant factor in the expansion of the region's economy has been the shifting attitudes of house purchasers, who are now buying bigger homes in addition to becoming homeowners. Boman Irani, head of CREDAI, the leading association of real estate firms, told PTI that "we expect this sentiment to continue in the near future." Consumers have grasped the value of house ownership.

According to experts and property developers, the sector is experiencing the "best of times" and is most likely in the first or second year of long-term recovery.

All price ranges saw robust sales, including premium, ultra-luxury, inexpensive, and mid-income residences. However, what took everyone by surprise was the enormous sales of properties ranging from Rs 3–4 crore to Rs 100 crore. Demand existed.

"In 2023, the Indian residential real estate market saw incredible expansion, peaking at a level not witnessed in the previous fifteen years. Strong end-user-led increase in residential demand is anticipated in the real estate industry, bolstered by a robust Indian economy. examining and providing," Anuj Puri, chairman of Anarock, said.

He was optimistic about the real estate market's continued growth in the next year.

"Given the ongoing growth as well as sustained momentum in the Indian economy and the country's residential real estate sector, the coming year is poised for sustained growth, even though the rate of growth may be slightly lower due to high base effect," Puri said.

He said that prices in important markets might increase by 8–10% in 2024 and that sales are anticipated to either surpass supply or maintain balance.

Large, well-known developers that had a solid track record of project execution stated that all of the inventory in their developments had been sold in a matter of days as investors and prospective homeowners flocked to reserve their apartments, depleting the supply.

The biggest real estate developer in the nation, DLF, said in March that 1,137 luxury flats valued at over Rs 8,000 crore and priced at Rs 7 crore and above had been sold in only three days.

In the most recent fiscal year, DLF, Prestige Estates, Macrotech Developers, and Godrej Properties all recorded sales bookings of between Rs 12,000 crore and Rs 15,000 crore. It is anticipated that these companies would do better in the fiscal year 2023–2024.

Developers that were branded and trusted were more likely to increase their land bank for future development as a result of the housing market's consolidation in terms of demand and supply.

The demand for office space is predicted to be steady this year at 37–39 million square feet across seven major cities, among other real estate sectors. There were worries that the global economic downturn and geopolitical unrest would cause a fall in office space lease or absorption this year.

In response to corporate demand, the flexible space sector has increased its offering. Companies are starting to replace conventional offices with managed workspaces in order to save expenses and eliminate site administration.

Along with a growth in retail spending came an increase in the leasing of retail space in shopping centers and prominent high-street sites.

Additionally, Nexus Select Trust, the first retail asset-backed REIT in India, raised Rs 7,100 crore this year under the sponsorship of international investment company Blackstone. Additionally, it has fully departed Embassy Office Parks, the nation's first REIT, by selling a 23.5% interest for Rs. Month in open market transactions.

Real estate investment trusts are known as REITs.

In order to create data center and warehouse projects, builders also expanded their offering. Co-living, which was severely impacted by the epidemic, has mostly recovered.

In summary, the housing market's ongoing high demand and respectable growth are encouraging to builders.

The industry has been expanding quickly since 2022 and seems to have recovered from the setbacks brought on by the Covid epidemic, NBFC crisis, demonetisation, and the enforcement of RERA and GST legislation.

With present affordability levels, the country has the potential to expand at the fastest rate in the world, and real estate momentum is predicted to continue through 2024. Hopefully, real estate will shift from 2023 to 2024 due to low interest rates and inflation. regarded as a record-breaking year."Both end-user supply and demand for residential," Puri said.

A new NAREDCO-Knight Frank analysis states that if the current development pattern is maintained, the Indian real estate industry might increase to US$5.8 trillion by 2047, up from US$477 billion the previous year. As.