Over the last two to three years, we have seen a turnaround in the sector. In 2023, India's real estate landscape demonstrated significant growth as the demand for homes in India continued to gain momentum. Propelled by end-user-driven demand, both new launches and home sales showed positive momentum as the affordability of residential real estate in India remains in a sweet spot.
India's rapidly growing economy, urbanization, and affluent population, the upswing in disposable income, the aspiration for modern spacious homes with better amenities, and the perception of real estate as a secure investment have also played a role in driving positive consumer sentiment.
Post-pandemic, homebuyers are increasingly inclined towards homeownership, seeking secure, sustainable, and multi-functional living spaces. This shift in preference has led to an uptick in home sales of upscale residential projects in India as today's buyers prioritize homes that support a better post-pandemic way of living and are willing to pay a premium for quality residential developments. As a result, group housing projects in the mid-premium, premium-plus, and luxury segment are doing well.
Consolidation in the real estate sector and consumer preference towards reputed developers on the back of strong product offerings and consistent project additions are also providing a strong opportunity for reputed developers as demand remains consistent across consumer segments and various price points and micro-markets and it would be fair to say that the market would do good in the coming years.
Favourable macroeconomic indicators including India's GDP growth being the highest in the world and the likelihood that interest rates are at or near their peak are expected to continue to drive positive momentum. Additionally, favourable government policies coupled with initiatives to streamline regulatory processes and promote affordable housing have further fuelled positive consumer sentiment. This has played a pivotal role in the overall growth of the domestic real estate sector.
