Predictions for 2024: Residential sector to drive realty growth, says Pirojsha Godrej

economictimes.indiatimes.com:

residential real estate cycle over the last three years with both volumes and pricing having meaningfully increased in 2023.

Initially, the positive sentiment was aided by strong affordability as interest rates were at all-time lows in 2020 and 2021 and as property prices had remained flat through the eight-year down cycle from 2013 to 2020. In the post-pandemic era, the customer focus remains on evolving lifestyle preferences, and a desire for multifunctional and sustainable living spaces which have resulted in strong home sales across mid-premium, premium and high-end residential projects in India.

Modern buyers are willing to invest in quality residential developments that support their lifestyle. Consolidation in the residential real estate sector has only accelerated over the last few years amid regulatory changes like demonetisation, GST, and RERA as well as the NBFC liquidity crisis leading to supply-side issues for many developers.

This has resulted in customers gravitating towards branded organised players.
Favourable macroeconomic indicators, including India’s GDP growth being the highest in the world, rapid urbanisation, and rising per-capita disposable incomes, make us very optimistic about the long-term prospects of the real estate sector in India.

We see demand sustaining in the residential market in 2024, and at least over the next three-five years, as the sector is still in the early stages of an upcycle.
Product proposition and quality will drive real estate in India, giving an edge to large, reputed developers with strong operational capabilities and healthy project pipelines.

We remain bullish from a demand perspective with a lot of headroom for growth over the next few years. However, a robust