The Indian real estate landscape is experiencing a remarkable upswing, with both demand and supply in the property markets across major cities showcasing a positive trend in the first nine months of 2023. This surge in activity is driven by various factors, including a significant increase in new supply, a surge in homebuyer sentiments, and the influence of digitalization, all contributing to a robust recovery post-pandemic.
New supply has witnessed a substantial uptick, with a 34 per cent increase seen in the launch of 3.8 lakh units during the initial three quarters of the year. This surge serves as a clear testament to the confidence developers have in the market, buoyed by the optimistic sentiments of homebuyers eager to capitalize on favorable market conditions.
Simultaneously, the buoyant mood among homebuyers is evident in the sales trends, with demand surging by 17 per cent year-on-year in the January-September period, resulting in approximately 2.7 lakh units sold. Notably, in the third quarter, the growth in demand has outpaced supply for the first time post-pandemic, indicating a significant shift in market dynamics.
Several factors have contributed to this resurgence, propelling the property markets towards a much-awaited upcycle. Firstly, there has been a notable shift towards homeownership, with buyers actively seeking properties that not only fulfill their basic requirements but also cater to their evolving needs in a post-pandemic world.
Moreover, the advent of the digital era has revolutionized the property market, making search and discovery easier than ever before. The digital shift post-pandemic has played a pivotal role in the market’s comeback, widening the reach of buyers and sellers. Online sales and marketing platforms have emerged as the preferred mode for initiating the homebuying journey, reflecting changing consumer preferences.
India’s resilient and positive economic trajectory has further bolstered confidence among developers, homebuyers, and investors, contributing significantly to the recovery witnessed in the residential market. The stability in the economic landscape has instilled a sense of reassurance, fueling optimism and driving the market towards growth.
As we look ahead to the remainder of 2023 and beyond, the outlook remains optimistic. With demand already 87 per cent closer to the levels witnessed in 2022, and the final quarter traditionally accounting for a significant share, indications point towards a strong finish for the year. Moreover, expectations are high for the coming year, with the property markets anticipated to sustain their growth trajectory, propelled by the factors discussed.
In summary, the Indian property market’s resurgence is a testament to the resilience and adaptability of the sector. With favorable market conditions, increasing demand, and technological advancements driving the momentum, the future looks promising for stakeholders across the real estate spectrum.
Renuka Kulkarni, a seasoned real estate professional, brings over five years of diverse experience in research, consulting, and architectural design within the urban sector. Her expertise spans public and private projects, showcasing proficiency in real estate research, trend interpretation, and policy analysis. With qualifications in architecture and a master’s degree in Data Science (Business Intelligence & Data Analytics) from IIIT Bengaluru, along with an M. Tech in Urban Development and Management from TERI School of Advanced Studies, New Delhi, Renuka seamlessly blends data analytics with market insights, offering a holistic understanding of the industry in her research pieces.
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