Future of real estate market in India in 2023

The residential real estate market in India made phenomenal progress in 2022, setting new sales records of 68%, demonstrating the industry’s prominence as one of India’s fastest growing industries. After two Covid-hit years, Tier 2 and Tier 3 cities emerge as the new key real estate trends in 2022, with the real estate market setting unprecedented benchmarks, continuing its growth momentum from 2021 amid a global slowdown is kept

real estate market in 2022

Hari Movva, Senior Vice President, SILA said that despite the faltering economy we are currently experiencing, the real estate sector is at its best ever in 2022 – among the top 7 major residential markets in India during this period, according to an industry report Highest sales ever recorded. 1st half of FY 2022-23 as compared to last 10 years. The affordable housing segment has witnessed significant growth due to increasing awareness of home ownership and favorable affordable housing schemes of the government. With people realizing the long-term potential of owning a home, v/s renting, there has been a steady growth in this segment. Increase in earning potential, need for better living standards and growing base of aspirational consumers and changes in their lifestyle have led to substantial growth in this sector. With favorable economic growth, the premium housing segment will also witness high demand in the coming years. Stamp duty reforms, introduction of affordable rental housing complexes and government-aided schemes will give a boost to this asset class, while providing relief to those who do not have access to it.

real estate market in india in 2023

Robin Chhabra – Founder & CEO of Dextrous Workspaces said, “Y2023 should be an exciting year; While we anticipate a further downward trend in the global economy, however, this should be an opportunity for the Indian economy to become a world leader. The real estate sector will continue on its journey of long-term growth as we witness sustained growth in per capita GDP, large disposable income, increasing urbanization and the world’s great focus on us as the next big economy. ,

“There will be high demand in offices and commercial spaces in Tier 1 and Tier 2 cities due to India’s strong growth potential. We are seeing this as a rapid commercial growth in Pune, Hyderabad etc. The coworking industry, a rising star, has successfully adapted to the changing work requirements and will continue to meet the needs of a young growing India. The co-working space in India is expected to cross 50 million sq ft by the end of 2023, a growth of 15%. Managed office space will continue to grow at a rate of 10% in 2023. According to a recent JLL report, there is net absorption of office space in 2022 in the top seven cities (Mumbai, Delhi-NCR, Bengaluru, Hyderabad, Chennai, Kolkata and Pune). 38.25 million sq ft,” said Robin Chhabra.

SILA Senior Vice President Hari Movva said, “We are excited about the scope of real estate in 2023 – we expect momentum on the residential side to be steady in most markets, with office providers having a similar year, while retail, Hospitality and industrial real estate will continue to have strong momentum. Due to new RBI regulations, where NBFCs are not allowed to make early stage RE investments, we expect a large volume of investments, especially in the residential sector, to boost supply. Capital will be required in Rs. AIF and HNI investors are two pockets that can fund this growth.”

“RBI’s monetary policy is a testament to the country’s commitment to financial stability and economic growth. The focus on keeping inflation under control while supporting the sector’s growth is commendable. The increased repo rate will impact residential sales to some extent.” But in the medium term, there will be no impact. The increase in cost of borrowing will have a direct impact on home buyers, leading to higher EMIs and lower affordability. It is important to understand the impact of this policy market and advise customers accordingly. While the increase may increase the cost of borrowing, it also reflects the central bank’s efforts to control inflation and maintain stability in the economy. The real estate market is affected by various factors such as supply and Will continue to be driven by other factors. Demand, regulatory framework and overall economic conditions.” Shivang Suraj, Founder and Director, Inframantra said

Anuj Sharma – Chief Operations Officer – IMGC said, “As we have another 25-bps increased repo rate which marks the end of the current rate hike cycle, lenders have taken steps to mitigate this impact and keep EMIs at the same level.” to keep the loan tenure extended whenever possible. However, with a 25 bps increase in the repo rate, the ability of banks to assist is limited (as the loan tenure extension has already come to an end), and the increase will This will increase the monthly payments. RBI’s monetary policy statement could have far-reaching consequences for the home finance and real estate sectors. With the repo rate hiked again in response to an inflation target, housing finance businesses Borrowing costs will increase, resulting in higher home loan interest rates for borrowers. This will increase the cost of mortgages and buying properties. This may reduce home demand. Also, an increase in interest rates will increase the cost of living for consumers. Mortgages will become more difficult to qualify for, which will further reduce demand . To help control inflation, the repo rate has been raised six times in the current financial year (the current repo rate is 6.5% versus 4% a year ago). With a final push of 35 basis points in December 2022, which will be later passed on to total users, retail consumers will start feeling the heat as their EMIs on existing loans start rising.”

Mr. PL Narayan, CEO & Founder, Nesca Homes said, “The Union Budget 2023-24 is remarkable in many ways, especially in the context of the real estate sector. The Finance Minister has announced “Green Growth” as one of the priorities of the budget. Organizations already working on the concept of green, sustainable living in India are already moving towards sustainability and this move will help them achieve their goals more efficiently. We welcome this move and look forward to a bright future in terms of sustainable infrastructure which is the need of the hour keeping in mind the environmental challenges of the country. Allocation of PMAY Rs 79,000 crore for affordable housing is also a good approach. Also, this budget is helping MSMEs and the budget allocation for Skill India development is also commendable.”

“Keeping in view the prevailing domestic and international scenarios and taking into account the growth achieved so far, the budget is holistic and growth-oriented. The increased tax exemption will definitely pump more liquidity into the markets which will provide more disposable income to the lower end. Will provide income. Income Spectrum. This can motivate individuals to buy homes which will further drive the growth of the real estate sector,” said Mr. Devanshu Bansal, Director, UK Realty.

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