Mumbai, Pune, and Hyderabad are poised to be the driving forces behind the anticipated growth in India’s residential real estate sector in 2024, according to a recent report by Housing.com. The IRIS index, a key indicator of future demand in major cities, is currently trending at 131 points in December 2023, reflecting 83 percent of its historical peak. This positive trend signals a robust market outlook for the upcoming months.
2024 Trends Unveiled
- Increased Demand for Larger Homes:
The trend towards larger home configurations, especially 3+BHK apartments, is gaining momentum. Search queries for these spacious layouts have escalated six-fold year-over-year in 2023, indicating a shift towards larger living spaces. - Luxury Living Gains Traction:
High-end apartments in the INR 1-2 crore bracket and above are expected to see a significant surge in demand in 2024. This segment witnessed a remarkable 7.5 times increase in online property search volume year-over-year in 2023.
Dhruv Agarwala, Group CEO of Housing.com, PropTiger.com, & Makaan.com, commented on the industry’s growth in 2023, citing robustness despite challenges like elevated interest rates and global uncertainties. The RBI’s decision to pause rate hikes in April, coupled with post-pandemic demand, has bolstered buyer confidence, setting the stage for a promising 2024.
Ankita Sood, Head of Research, Housing.com, PropTiger.com, & Makaan.com, anticipates good momentum in both property buying and renting in 2024. The IRIS index, tracking upcoming demand, estimates a northbound movement, and Sood emphasizes that growth will extend beyond metros to Tier-2 cities as newfound economic and realty epicenters.
Localities to Watch Out for in 2024
Localities such as Greater Noida West (Greater Noida), Mira Road East, Malad West (Mumbai), Kondapur (Hyderabad), and Whitefield (Bengaluru) took the highest share in online high-intent home buying activity on Housing.com’s portal.
Rental Market and Emerging Trends in Tier II Cities
Online search trends predict significant growth in the rental market in 2024, especially in Gurugram, Mumbai, Bengaluru, and Pune, driven by the resumption of back-to-office work policies. Additionally, Tier II cities such as Jaipur, Indore, Lucknow, Mohali, and Vadodara are emerging as substantial markets for residential activity.
Significance of Gated Communities and Consumer Sentiment
Gated communities with ready-to-move-in properties are expected to play a crucial role in home purchases in 2024. The Consumer Sentiment Outlook indicates a preference for direct purchases from developers, showcasing renewed trust towards new property developments compared to resale properties.
In conclusion, these trends depict a vibrant and evolving landscape of homebuyer preferences and expectations in India’s residential real estate market for 2024. This comprehensive analysis offers valuable insights for both homebuyers and developers, enabling well-informed decision-making in a dynamic market environment.
