Record-breaking demand and supply drive Indian real estate market’s remarkable revival
India’s real estate started its upwards journey post the Covid-19 mayhem in 2021 itself. By the end of 2022, the country’s second largest employment generating sector had gained momentum as reflected in key performance indicators, as buyer sentiment vis-à-vis the sector changed in the aftermath of the pandemic. In that sense, the year 2023 started on a firm footing for the sector that contributes greatly to India’s overall growth.
The resilience of the sector that underwent dramatic alterations in the past one decade — from absorbing several legal changes to facing a plethora of course-altering challenges — is further reflected through the latest quarterly data.
Demand continued to push fresh supply as well as boosting sales numbers amid an economic environment that offers stable housing loans and better job stability.
According to PropTiger’s Real Insight Residential report, India’s eight prime housing markets showed sales growth of 8% while new homes supply jumped 11% year-on-year during the April-June quarter of 2023 when compared to the same quarter the previous year.
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Developers launched 113,770 units in the first quarter of FY24 compared to 102,140 in the April-June quarter of FY23. Mumbai has been the frontrunner in terms of new supply, followed by Pune and Ahmedabad. A total of 80,250 units were sold in the eight cities in Q2 2023 compared to 74,320 in the year-ago quarter, shows the report.
On the other hand, all cities covered in the analysis showed positive price movement in the past one year. Gurgaon was an outlier with double-digit price growth of 12% YoY. Growth has kept investors interested in this segment, which was largely restricted
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