Year 2024 had been kind to real estate sector.
The year witnessed a 16% yearly jump in overall sales value of housing units and 32% YoY growth in PE investments with warehousing sector accounting for 45%, residential sector 28% and the office sector accounting 26% of the total investments.
The office gross absorption across India’s six major cities registered a 21% growth in 2024 over last year and mall vacancies are at just 8.3% in 2024, down from 15.5% in 2021.
A welcome move in 2024 had been the central bank’s decision to reduce the Cash Reserve Ratio (CRR) that banks must maintain, freeing up more funds for banks to lend and probably leading to lower interest rates for borrowers. A reduction in interest rates will particularly benefit home loan takers.
In 2025, real estate anticipates proactive policies to strengthen the sector’s growth trajectory.
The long-standing demand of reducing GST on raw materials, under-construction homes, rationalizing stamp duty rates, industry status single window, can go a long way in enhancing affordability and boosting buyers as well as investors sentiments.
Overall, the outlook for 2025 remains optimistic as Tier 2 cities are showing great growth potential across real estate classes and a significant number of millennials and Gen Zs are entering the real estate market as first time buyers.
All eyes on the union budget now.
