As the curtains draw on 2023, real estate experts are optimistic about the industry’s performance in the upcoming year. Stakeholders in the Indian real estate sector expect a notable rise in property prices across different segments, building on the positive momentum witnessed in the past year. Here’s a closer look at the insights and expectations from industry leaders.
The Year That Was: Real Estate Resurgence
The year 2023 marked a notable comeback for the Indian real estate sector, with the mid-segment and luxury-segment leading the way. According to data from Anarock, approximately 4,76,530 units were sold in 2023 across the top seven cities, showcasing a significant increase from the 3,64,870 units sold in 2022. This resurgence has set the stage for positive expectations in the year ahead.
Expert Predictions for 2024: Rising Prices Across Segments
Industry leaders and stakeholders are unanimous in their prediction of a rise in real estate prices in 2024. Niranjan Hiranandani, Chairman of NAREDCO National, anticipates a 10-12% increase in property prices, attributing it to the persisting housing deficit and the surge in demand driven by rising disposable incomes and better employment opportunities.
Rakesh Reddy, Director of Aparna Constructions, echoes this sentiment, expecting a 10% rise in average residential property prices. He highlights the shift in housing preferences towards more spacious properties, reflecting the evolving needs of homebuyers.
Ankur Gupta, JMD of Ashiana Housing, acknowledges the expectation of a moderation in price appreciation compared to the previous year but underscores a steadfast expectation of robust price increases. The market is poised for steady growth, affirming the enduring strength of both supply and demand dynamics.
Insights from Industry Leaders:
Niranjan Hiranandani, Chairman, NAREDCO National:
- Prediction: 10-12% increase in property prices for 2024.
- Rationale: Strong demand due to housing deficit, rising disposable incomes, and better employment opportunities.
Rakesh Reddy, Director, Aparna Constructions:
- Prediction: Anticipates a 10% rise in average residential property prices for 2024.
- Observation: Noteworthy shift in housing preferences towards more spacious properties.
Ankur Gupta, JMD, Ashiana Housing:
- Expectation: Moderation in price appreciation compared to the previous year.
- Insight: Steady growth with enduring strength in supply and demand dynamics.
Venkatesh Gopalakrishnan, MD & CEO, Shapoorji Pallonji Real Estate (SPRE):
- Observation: Luxurious and premium housing segments led the way in 2023.
- Insight: Homebuyers prioritize quality residential developments post-pandemic.
Gaurav Pandey, MD & CEO, Godrej Properties:
- Insight: Shift in preference towards homeownership for better post-pandemic living.
- Observation: Upscale residential projects in mid-premium, premium-plus, and luxury segments are thriving.
Pritam Chivukula, Vice President, CREDAI MCHI:
- Insight: Significant shift towards sustainable living is reshaping residential architecture.
- Observation: Prospective homebuyers seek larger living spaces, enhanced amenities, and attractive pricing models.
As the real estate industry gears up for 2024, these predictions and insights from industry experts provide a comprehensive overview of the positive outlook and growth expectations in the coming year.
