Residential real estate performed very well in 2022 and is in a way for a prosperous 2023.In 2022, India's residential real estate industry had astonishing growth, with record-breaking sales showing better buyer and investor enthusiasm. According to an industry survey, the top seven prime residential markets in India had the greatest sales in the first half of the fiscal year 2022-23 when compared to the previous ten years. The research also stated that premium and luxury dwellings are driving the expansion of the Indian housing industry.
According to a big real estate company, sales in India's top seven property markets surpassed 1.61 lakh flats in the first nine months of 2022, outperforming the yearly sales record since years before. Luxury housing shone out this year, with gated communities and smart townships leading the favoured house market. According to a real estate company statistics, more than 25,650 luxury residences priced over Rs 1.5 crore were sold across seven major cities between January and June 2022.
"2022 has been a great year for India's real estate market following years of downturn," remarked a CMD in response. The sector's excellent growth graph and consistent pace throughout the year reflect improved market sentiments and confidence among investors and homebuyers. Furthermore, the growing emphasis on homeownership fueled a substantial number of new launches in NCR this year. Gurugram's real estate sector has seen extraordinary growth, with property sales more than tripling between January and September 2022. The rise was caused by rising house demand at all price points."
According to a Consumer Sentiment Survey done by a real estate consultancy, NRI housing demand surged by 15-20% from Jan-Sep months of 2022 compared to the same period in 2021. According to the survey, almost 20% of NRIs choose to buy upscale residential homes in Delhi NCR.
"The Millennium City and its micro-markets, particularly Sohna, have emerged as bright stars for the residential market across categories," the CMD continued. NRIs, UHNIs, and HNIs looking for high-end flats, bungalows, villas, best-in-class hospitality, and picturesque landscapes want to invest in Gurugram because the Millennium City provides an unequalled lifestyle and lucrative profits." According to real estate experts, the rising number of ambitious customers, as well as their lifestyle changes, will increase demand for luxury houses in the next year. The emphasis now is on associating luxury living with a healthy and fulfilled existence.
"The continued growth momentum throughout the year achieved new milestones in house sales and new launches," stated a Group Director and Business Strategist. Nowadays, buyers are more inclined to purchase property since it is a better investment than renting. The whole real estate industry, which serves as an important pillar of the infrastructure sector, is now thriving. Experts predict that over the next five years, demand for real estate infrastructure will outnumber supply and that the more infrastructure the real estate sector develops, the bigger the need will be. However, infrastructure and need-based development should be prioritised. Furthermore, the government should relax rules for promoters and developers. Furthermore, the government should extend its elbow to developers so that they may sell conforming properties, have a faster clearance procedure, and can be constructed swiftly,"- as per realtors.
This year, the inexpensive sector saw a major boost as a result of rising homeownership awareness and the government's favourable affordable housing programmes. Due to shifting customer preferences, a real estate company believes that planned developments and autonomous floors will become more popular in the future years.
"The realty market has returned, with developers reporting a jump in property demand," stated a Founder and Chairman of a company. In terms of segmental growth, cheap housing has been a driving force, with demand for mid and affordable sectors continuously growing, bolstered by restored buyer/developer confidence. Independent floors are also gaining popularity among the middle class due to their increased cost and space. The Pradhan Mantri Awas Yojna, which seeks to finish around 80 lakh residences by 2023, might also be credited to the segment's rise. Furthermore, affordable housing financing will expand the fastest, with mortgage penetration likely to treble to 8-10% over the next several years, spurring additional growth."
The hybrid work paradigm has encouraged many multinational corporations and startups to establish offices in non-metropolitan areas, resulting in a significant rise in job prospects. As a result, such cities are seeing an inflow of job seekers, which has resulted in an increase in residential real estate demand. Buyers are increasingly looking for upscale homes in Tier 2 cities such as Tri-city, Ludhiana, Amritsar, Indore, and Lucknow, owing to the affordability of homes in these cities as well as ongoing social and physical infrastructure developments that bring these cities up to the level of metropolitan areas.
"Positive emotions among both buyers and developers have supported the country's real estate business throughout the year," stated a Chairman of a Realty Company. Tier 2 and Tier 3 cities have emerged as new major real estate markets in 2022, and we feel that the emerging cities have enormous potential to meet the needs of purchasers. Working people are increasingly eager to return to their hometowns in Tier 2 cities for a more serene living in the midst of the hybrid work (Work from anywhere) system. This year has seen a considerable surge in residential and rental demand in Tier 2 cities such as Tri-city (Chandigarh-Panchkula-Mohali), Ludhiana, Dehradun, Panipat, Sonipat, Lucknow, and others. In response to the increased buyer confidence, industry participants are likewise looking into smaller cities to meet demand."
In 2023, the residential real estate industry is expected to grow. Experts are pretty optimistic about residential real estate prospects, which will be bolstered by favourable government policies and strong economic development.