The residential market of the country experienced a notable buoyancy in 2023. In contrast to numerous pessimistic predictions for the residential sector, given the gradual rise in interest rates for home loans and persistent global economic challenges, it has exceeded expectations by demonstrating strong recovery figures in 2023. The market witnessed a remarkable 20 percent Year-over-Year (YoY) uptick in new supply in 2023, with around 517,071 residential units launched during the period, while sales saw a significant YoY growth of 33 percent with 410,791 units sold.
Which City Is Portraying a Significant Interest in Larger Homes?
During the year, several cities exhibited exceptional performance in their housing markets, with Ahmedabad standing out as a notable example. Ahmedabad has progressed rapidly to occupy a significant position in India’s real estate scene, offering a distinctive fusion of culture and commerce. Transitioning from a bustling trade hub to its current status as a thriving metropolis, Ahmedabad’s housing landscape has undergone substantial changes, reflecting its economic dynamism and urban aspirations. The city’s advantageous location, well-established infrastructure, and flourishing industries have drawn a diverse demographic, including professionals and students. In the wake of the pandemic, a renewed emphasis on homeownership and the growing trend towards remote work have propelled Ahmedabad’s residential market to exhibit substantial growth and demand.
Robust Growth in Supply and Sales
The residential real estate market in Ahmedabad has been evolving progressively over the years, witnessing a remarkable upswing in sales and new supply.
Ahmedabad saw approximately 41,327 residential units sold during 2023. When compared to the previous year, sales showed a remarkable 51 percent increase. In terms of new supply, the city recorded the launch of 55,877 units, depicting a whopping 71 percent increase Year-on-Year.
The upswing in the housing market highlights the city’s ability to maintain a consistent demand for housing, even in the face of challenges arising from fluctuating market conditions influenced by both internal and global economic factors.
3BHK Housing Units See Substantial Rise in Online Search Queries
Ahmedabad has been observing a substantial shift in homebuyers’ preferences, as reflected in a noteworthy surge in online searches for larger residences, with the demand for 3 BHK homes experiencing a remarkable 86% year-on-year growth during 2023.
The increase in 3 BHK search queries suggests a changing paradigm in homebuying patterns, where prospective buyers are placing a premium on larger, multifunctional spaces. This trend is likely influenced by aspirational lifestyle needs, possibly intensified by the impact of the global pandemic, which has prompted a revaluation of living spaces in the context of remote work and versatile domestic requirements.
Sales Trend Leans in Favour Of 3 BHK Residences
Interestingly, not only were online searches focused on larger homes but homebuyers distinctly favoured 3BHK residences on the physical front as well, accounting for a significant 47 percent of total sales in 2023.
This inclination appears to be tied to changing lifestyles, with families increasingly seeking more extensive living spaces to meet diverse needs, particularly in a post-pandemic era marked by the prevalence of hybrid work arrangements. Meanwhile, 2BHK residences closely followed, securing a 34 percent share of the overall sales.
Conclusion
Ahmedabad's quest for larger homes not only reflects a shift in consumer preferences but also poses interesting implications for the local real estate market. Developers and builders may need to adapt to this growing demand for expansive residences, tailoring their offerings to cater to the changing needs and aspirations of homebuyers in the city. As the real estate landscape of Ahmedabad continues on its development path, this surge in 3 BHK searches serves as a dynamic indicator of evolving housing preferences in the city.
