Real estate demand in India will boom in 2023 : Experts Predictions
It's that time of the year when you need to draw out a budget plan for your investments.
While the Indian real estate sector exhibited resilience during the COVID-19 pandemic, strong consumer demand and rising incomes have resulted in major housing markets within the country growing by 40% in the first nine months of 2022. According to independent property consultant Knight Frank India, cities like Mumbai, Bengaluru, and the National Capital Region (NCR) have been witnessing increasing sales, with the third quarter recording the highest unit sales so far. Sales in the July-September 2022 period are 20% higher than those reported in the corresponding period in 2019, fuelling expectations of double-digit growth numbers in 2023 as well. There are some microtrends that are contributing to this resurgence. The markets could potentially offer higher appreciation potential in the year ahead.
In 2022, real estate developers showed caution in launching new projects to reduce the already existing high inventory. This is expected to continue in 2023 as well. Real estate developers launched selective new projects with better amenities to suit the changed preferences of home buyers. The pandemic has changed the definition of a home. This is reflected in the increased interest in high-quality homes with designated workspaces, gyms, and outdoor spaces. Ready-to-move-in properties will be more in demand as home buyers prefer to invest in properties they can move into immediately. In fact, much of the demand in 2022 was for ready-to-move-in homes.
On an overall basis, real estate sentiment is positive with growth being driven by the residential segment followed by the commercial and retail segments. In the post-covid period, domestic and international travel is also on the rise which is expected to fuel demand for hotel rooms. The hospitality sector is already seeing an increase in occupancy and an increase in average room rates. If there is no further pandemic scare, this trend could well continue into 2023. With 2022 ending on a positive note for the real estate sector, 2023 promises to be an even better year.