Indian real estate market achieves record growth in 2023, surpassing projections

financialexpress.com:

The Indian real estate market witnessed an unprecedented surge in 2023, surpassing all expectations and setting new records. This dynamic market is now a beacon of opportunities for both domestic and international investors, propelling the economy to greater heights. Inflows into the Indian real estate sector soared to an impressive $5.1 billion in 2023, with land acquisitions accounting for a staggering 40 percent of this surge. Domestic developers took the lead, capturing 42 percent of overall investments, while international investment funds adopted a cautious approach. Despite projections of a tapering in capital inflow, strategic investments in residential and industrial sectors continue to drive the market forward.

The fractional ownership market, valued at $5.4 billion in 2020, is forecasted to reach $8.9 billion by 2025, boasting a robust Compound Annual Growth Rate (CAGR) of 10.5 percent. This approach offers retail investors access to Grade A office properties, encouraging portfolio diversification within SEBI’s regulatory framework. The residential sector emerges as a focal point for growth, buoyed by sustained demand, stable interest rates, and robust GDP expansion. Notably, there’s a surge in demand for mid- and high-priced residential properties.

Commenting on this, Vineet Dawar, Sr Vice President, Sales and Strategy, Elan Group, said, “This year, the sector proved its mettle, navigating through challenges and emerging stronger than ever. Particularly the residential segment, notably luxury housing, outperformed itself, attracting the attention of end-users and buyers alike. In the NCR region, Gurgaon emerged as the most sought-after location, complemented by booming infrastructure developments. Within