Industry experts predict that the positive growth in home buying seen in 2023 will continue into 2024. CBRE forecasts sustained demand for mid-end and budget/affordable housing projects (priced between Rs 45 lakh to Rs 1 crore) consistent with recent trends.
Premium and luxury segments (priced from Rs 2 crore to Rs 4 crore and above) are also expected to see robust real estate growth.
This market shows significant growth of residential market in India in the years ahead. In this blog, we’ll discuss the growth of the residential market in India by comparison with previous years. So, stay tuned!
Luxury Residential Project Demand
According to a recent CBRE(Coldwell Banker Richard Ellis) report, there has been a significant surge in sales within the premium and luxury housing segment, which includes units priced at Rs 2 crore and above. From January to September 2023, there was a notable 70% year-on-year increase in sales.
This trend is particularly pronounced in cities like Delhi-NCR, Kolkata, and Mumbai, where these categories collectively account for approximately 20% of overall sales.
Looking ahead to 2024, industry expert Amrita Gupta notes a growing emphasis on sustainability in the real estate sector. The shift towards sustainable homes reflects a broader commitment to a greener future, with homebuyers increasingly valuing ownership in a favorable market.
While Tier I cities remain attractive, Tier II and III cities are anticipated to experience accelerated growth, driving development and complementing established regions.
Real Estate Growth: Comparison Between 2023 and 2024
Stating that in 2023, the luxury real estate sector in India saw significant growth, with a notable 97% increase in luxury home sales. This highlights the enduring appeal and resilience of the high-end real estate market.
Looking ahead to 2024, the demand for luxury real estate and vacation homes is anticipated to continue rising. Homebuyers are increasingly seeking luxurious living experiences that incorporate global design and decor elements. Additionally, the preferences of the NRI market are contributing positively to the industry’s outlook.
Some developers express cautious optimism for the real estate market in 2024. They anticipate continued economic recovery and government support for affordable housing to drive demand. Developers are expected to prioritize sustainable and technologically advanced projects to meet changing consumer preferences.
The commercial real estate sector may see a resurgence with the adoption of hybrid work models, highlighting the importance of flexible office spaces. Infrastructure improvements are also expected to create new investment opportunities.
The holiday home segment is forecasted to perform well, particularly in Goa, due to its scenic beauty and cultural richness. Developers aim to meet evolving client preferences with cutting-edge amenities, supported by anticipated government schemes. Sustainability aligns with the industry’s vision for a progressive real estate landscape.
Furthermore, homebuyers are considering factors beyond affordability, including health and safety, community living, sustainability, and smart home technologies in their purchase decisions.
Final Words
The latest directives from SEBI(Securities and Exchange Board of India) regarding fractional ownership and small REITs have strengthened the groundwork for the real estate sector’s expansion in 2024.
So, it can be said that in 2024, we will see a robust growth of buying intent of luxury residential projects in prime cities in India such as Kolkata, Pune, Bangalore. To get notified of real estate news and trends, get in touch with Srijan Realty, a reputed real estate developer in Kolkata.
