Business Standard’s Post

Indian Housing Market Poised for Moderate Growth in 2024 Good news for the Indian real estate sector! A recent report by CRISIL Ratings predicts a stable market with potential for growth in 2024. Here are the key takeaways: Price Increase: Home prices are expected to rise by 4-6%, supported by rising per capita income. Improved Affordability: Moderating inflation, stable commodity prices, and potential interest rate cuts in the latter half of the year could improve affordability for homebuyers. Market Consolidation: The market share of major listed developers is expected to double, reaching 30-32% by year-end, driven by a focus on timely project completion and quality. Growth for Large Developers: Large, listed developers are expected to see 10-12% growth in sales volume this year, building on last year's 14% increase. Strong financials and a shift towards asset-light models are contributing factors. Premiumization Trend: The supply of new homes is tilting towards mid-to-premium and luxury segments, with launches in the affordable segment likely to remain low. Positive outlook for the Indian housing market! This is a great time to be involved in the industry, especially for established developers with a strong track record. #IndianRealEstate #MarketTrends #GrowthPotential #RealEstate #Investment

After rising 4.3 per cent last year, home prices in India - broadly referring to housing in major cities - were expected to rise 7.0 per cent this year, 6.5 per cent in 2025 and 7.5 per cent in 2026, median forecasts from the Nov. 12-29 survey of 12 property market experts showed. #sales #realestate #mumbai

Property prices are on the rise across India's top 8 cities, signaling strong demand and steady growth in the real estate market.** According to recent reports, this trend is driven by high demand, urban expansion, and increased investment in housing infrastructure. The growth provides both opportunities and challenges for homebuyers, investors, and policymakers alike. Source: [Economic Times](https://lnkd.in/dPZzdgFV) #RealEstateIndia #PropertyMarket #HousingTrends #RealEstateInvestment #PropertyPrices #IndianEconomy #CityGrowth #UrbanDevelopment #InvestmentOpportunities #EconomicGrowth #HousingMarket

Property prices are on the rise across India's top 8 cities, signaling strong demand and steady growth in the real estate market.** According to recent reports, this trend is driven by high demand, urban expansion, and increased investment in housing infrastructure. The growth provides both opportunities and challenges for homebuyers, investors, and policymakers alike. Source: [Economic Times](https://lnkd.in/dyjCzv-a) #RealEstateIndia #PropertyMarket #HousingTrends #RealEstateInvestment #PropertyPrices #IndianEconomy #CityGrowth #UrbanDevelopment #InvestmentOpportunities #EconomicGrowth #HousingMarket

Bengaluru top choice for non-resident Indians eyeing budget and mid-segment homes Bengaluru has held on to its status as the top choice for non-resident Indians looking to invest in India’s residential real estate market, especially those eyeing budget and mid-segment housing, data sourced from multiple consultancy firms by HT Digital showed. In Bengaluru, the data specific to NRI home purchases facilitated by Cushman & Wakefield indicates that 65% of the transactions are for investment purposes, while 35% are for end-use, said Shalin Raina, Managing Director, Residential Services, Cushman & Wakefield. #realestate #property #housing #residential #demand #growth #investors #investments #data #report #realestatedevelopers #realestateagents #projects #newlaunches #therealtynews #homebuyers #nris #hnwis Cushman & Wakefield https://lnkd.in/gCr26v7T

Home Sales on the HIGH - despite Interest Rates & Prices - March '24 recorded at 74K @indiancities #Infrapush #indianeconomy It's interesting to note that despite challenges like high interest rates and prices, home sales in Indian cities remain robust. The recorded figure of 74,000 home sales in March 2024 indicates continued demand for housing, possibly fueled by factors such as urbanization, population growth, and aspirations for home ownership. Several factors could be contributing to this trend: (a) Urbanization: As more people move to urban areas for better opportunities, the demand for housing in cities continues to rise. (b) Population Growth: India's population continues to grow, creating a constant need for new housing units to accommodate the expanding population. (c) Aspirations for Home Ownership: Owning a home is a significant aspiration for many Indians, and despite economic fluctuations, this desire remains strong. (d) Government Policies: Government initiatives and policies aimed at promoting affordable housing or providing incentives for homebuyers could be playing a role in sustaining demand. (e) Investment: Real estate continues to be seen as a relatively stable investment option, attracting buyers even amidst economic uncertainties. However, it's essential to monitor how sustainable this trend is in the long term, especially considering factors like affordability, access to financing, and economic stability. Additionally, fluctuations in interest rates and property prices can influence buyer behavior over time.

India's real estate market is experiencing significant growth and transformation across various sectors. Here are some key trends and insights: 1. Market Size and Growth: The real estate sector in India is projected to reach a market size of $1 trillion by 2030, up from $200 billion in 2021. This sector is also expected to contribute 13% to the country's GDP by 2025 2. Residential Real Estate: The demand for residential properties has seen a substantial increase. In 2023, home sales reached an all-time high with a 48% year-on-year increase in value. This surge is driven by a mix of mid-income, premium, and luxury segments despite high mortgage rates and property prices. 3. Commercial Real Estate: The commercial real estate segment is also booming, with gross leasing activity in top cities exceeding 60 million sq. ft. in 2023. Sectors such as banking, financial services, and technology are major contributors to this growth. 4. Emerging Trends: Several trends are shaping the future of Indian real estate. These include the growing popularity of smart cities, such as the Dholera Smart City project in Gujarat, and the rise in sustainable and eco-friendly developments. 5. Investment and Development: The sector continues to attract substantial investments, both domestic and international. Private equity investments in Indian real estate stood at $4.2 billion in 2023. Moreover, the sector has seen significant foreign institutional inflows and investments in commercial projects. 6. Government Initiatives: Government policies and initiatives, such as the lowering of the minimum application value for Real Estate Investment Trusts (REITs) and various affordable housing schemes, are playing a crucial role in driving growth and making the market more accessible to a broader range of investors. 7. Future Outlook: The outlook for 2024 is optimistic, with continued urbanization and growth in the rental market. Expected reductions in home loan interest rates are likely to keep residential properties affordable, further boosting demand. Overall, India's real estate market is on a robust growth path, driven by a mix of policy support, rising investments, and strong demand across both residential and commercial segments.

Home Prices are Scaling Peaks: Are We in for an Extended Bullish Market? India's residential property market has seen a significant upswing in 2024, with home prices at unprecedented levels. This surge is due to rising demand for premium properties, extensive infrastructural developments, and a favourable lending environment. Average home prices across major cities have seen substantial increases. Key Drivers of Rising Home Prices A major factor driving this growth is the development of micro-markets, especially on city outskirts. Areas like Dwarka Expressway in Delhi NCR and emerging areas in Gurugram are hotspots for residential demand due to improved infrastructure. Gurugram's average property prices have risen, with prime areas like Dwarka Expressway seeing a 15.5% increase, reaching ₹14,650 per sq ft over the past year. Boom in Premium and Luxury Housing Segments Premium and luxury housing are thriving, driven by high-net-worth individuals and an expanding middle class. This trend is prominent in tech-friendly cities like Gurugram and Hyderabad, fueled by domestic and international investors. Housing supply has also increased, with over 183,000 units launched in the first half of 2024. Market Forecast for 2024 and Beyond Forecasts suggest home prices will rise about 6% in 2024, outpacing consumer price inflation. Cities like Mumbai and Delhi may see 6-7% growth. Supported by stable repo rates at 6.50% maintained by the Reserve Bank of India, the market's bullish trend is expected to continue through 2024 despite rising interest rates and inflation. Key Factors Supporting the Bullish Market Urban migration and rising income levels, particularly among white-collar workers, continue to drive housing demand. India’s housing market, supported by a growing economy, is poised for continued expansion, with prices expected to rise further in high-demand areas like Gurugram and Mumbai. Caution for Buyers and Investors While the market shows strong momentum, buyers and investors should remain cautious. Rising property prices, especially in luxury and premium segments, may strain middle-class affordability. However, for those eyeing high-growth areas or luxury properties, the market offers significant opportunities for capital appreciation. Conclusion: An Extended Bullish Phase? In conclusion, India's residential property market displays all signs of an extended bullish phase. With growing urban demand, strong economic fundamentals, and robust investor interest, home prices are likely to continue their upward climb in the foreseeable future. Now could be the opportune time to invest—before prices escalate even further. Read More: 1. https://lnkd.in/gWiVjU6p 2. https://lnkd.in/gm65mnTD #RealEstateIndia #HousingMarket #PropertyInvestment

India Real Estate Market Outlook India’s real estate market is expected to continue experiencing nominal growth in the coming years, according to Anshul Jain, head of Cushman & Wakefield in India. In a video interview with PTI, he highlighted that growth in housing prices would be nominal in short to medium term after rising sharply over the last two years due to surge in demand post the COVID pandemic. “Housing demand in India was quite muted from 2013-2014, all the way to 2019. The prices were stagnant. There was a wave at that point in time, where people, particularly youngsters did not want to own anything. We were talking about Uberisation of the residential sector where people wanted to rent and did not want to sort of make a commitment,” Jain said. However, the mindset shifted during the COVID-19 pandemic. Many started realizing the stability of owning a house during the crisis. And India has experienced low interest rates for a prolonged period. These factors boosted housing demand. Jain noted that housing sales and prices went up driven by end-user demand, while the price surge also attracted investors. “So, a combination of that became a perfect cocktail, for a very strong demand post COVID from a housing perspective,” Jain observed. Going forward, Jain believed that although there had been a significant increase in housing prices over the past two years, the rise was still within a normal range in the long term. He anticipated prices to stabilize in the next one to two years, with growth mainly being driven by factors like inflation and regular market demand. When asked about whether prices have peaked, Jain mentioned that while there had been a very steep price rise, we would probably see a little bit more stability in price rise. Various real estate market reports suggest that India’s housing market has experienced rapid recovery post pandemic. Prices in major cities increased by an average of 10% last year, and some micro-markets even witnessed a surge of 40-70% over the past two years. Homebuyers have gravitated toward reputable developers...... More info pls click https://lnkd.in/gC4Hi6Pk

The anticipated 6.5% rise in home prices in India by 2025, driven by increased demand from wealthy individuals, reflects a significant wedge impact in the real estate sector. The wedge impact refers to the imbalance created by disproportionate demand in specific market segments, particularly luxury housing, as compared to other segments like affordable or mid-income housing. This phenomenon disrupts the broader market equilibrium and can have far-reaching consequences on inventory dynamics. Correlation with Inventory: 1. Luxury Demand vs. Inventory Absorption: The rising demand for high-end housing is likely to outpace the current inventory of luxury homes. Builders may focus on launching more high-margin projects, leading to an over-concentration of inventory in the luxury segment. However, this can leave inventories in the affordable and mid-income segments unsold, exacerbating the existing inventory overhang in those categories. 2. Inventory Overhang in Affordable Housing: India's real estate market has long struggled with inventory overhang, particularly in affordable and mid-income housing. Developers often overestimate demand or misalign pricing strategies, leading to slow absorption rates in these segments. A shift in focus toward wealthy buyers may further stagnate inventory in affordable housing, as developers prioritize catering to high-income clientele for better margins. 3. Pricing and Inventory Elasticity: The increase in home prices due to luxury demand could make housing even less affordable for mid-income buyers, reducing the absorption rate of mid-range inventories. Conversely, higher price expectations may discourage developers from offloading older or unsold inventory at discounted rates, prolonging the inventory pile-up. 4. Impact on Real Estate Cycles: The wedge impact creates a dual-speed real estate market: robust activity in the high-end segment and stagnation in others. This bifurcation can distort market signals, leading to inefficiencies in resource allocation and delays in clearing inventory. Inventory management strategies by developers may increasingly skew toward speculative high-end projects, potentially deepening market imbalances. 5. Policy Implications: To address inventory challenges, policymakers and regulators may need to intervene with incentives for affordable housing and penalties for excessive luxury inventory. Promoting rental housing or implementing stricter controls on speculative pricing in the luxury market could help. Conclusion: The wedge impact from high-end demand not only inflates prices but also risks leaving other segments of the market underserved. As unsold inventory in affordable and mid-income segments builds up, it could exacerbate inefficiencies in the real estate sector.