In its bi-annual report, real estate consultant Knight Frank India revealed that housing prices climbed from a 2 to 10 per cent year-on-year disparity, despite a slight 1 per cent decrease in sales, during the first half of 2023 in India's major realty markets. In comparison, gross office space leasing grew by 3 per cent to 26.1 million square feet from 25.3 million square feet seen in the prior year period. Below is the full report by SURFACES REPORTER (SR):
Naveen Kumar, director of Navraj Infratech, remarked on the findings," The residential sector has displayed remarkable strength and potential to develop, recording the second-highest sales quantity in close to a decade. Although there were some fluctuations year-on-year, this result reveals a positive variation in market conditions."
Major Cities Stand Strong Despite Economic Volatility
Data shows that the housing and office markets of major cities have remained consistent during the first half of 2023, despite a fluctuation in interest rates on home loans and global factors. According to Knight Frank data, luxury homes now account for more of overall housing sales than before.
The demand is mainly driven by mid and premium segments, while affordable housing has witnessed a decline due to its diminished share in sales. Rajjath Goel, MD of MRG Group, believes that the first six months have witnessed an exceptional surge in sales, implying that real estate could be heading towards potential success. He further claims that this year's sales levels are the highest in the last decade, which emphasizes sectoral prosperity.
Comprehensive Overview of Property Sales and Demand
- The situation in Mumbai was less than promising, with an 8% reduction in residential purchases between January and June (40,798 units compared to 44,200) when compared to the same period last year. However, office space leasing in Mumbai increased by 9% (3.2 million sq ft from 3 million).
- In Delhi-NCR, property sales rose 3%, counting 30,114 units from 29,101 during the same period; office spaces went up 24% (5.1 million sq ft from 4 million).
- Sales of residences in Bengaluru were down slightly (2%) – 26,247 units versus 26,677 – whilst office lease fell 10% (7 million sq ft from 7.7 million)," he adds.
- In Pune, there was a 1% dip in housing sales to 21,670 units from the previous year's figure of 21,797 units. Leasing of office space saw a drop of 30%, totalling 2.3 million square feet versus 3.3 million square feet previously.
- In contrast, Chennai recorded a 3% rise in housing sales to 7,150 units compared to 6,951 units earlier and an impressive two-fold increase in office space leasing to 4.5 million square feet from 2.2 million square feet the previous year.
- Hyderabad experienced a 5% growth in housing sales with 15,355 units sold as opposed to 14,693 units before, but leasing of office space declined 8% to 2.9 million square feet compared with 3.2 million square feet last year.
- Kolkata also observed an uptick of 3% for housing sales, with 7,324 units being sold instead of 7,090 previously; however, office demand went down 3%, amounting to 0.6 million square feet in total.
- Finally, Ahmedabad experienced a 3% reduction in housing sales for the January-June period this year as opposed to 8,197 units for 2022 - amounting to 7, "982 this year - while leasing.
Quality Properties are in High Demand
Buyers are actively on the market for quality properties that can both satisfy their current needs and serve as stable investments. "We are devoted to creating first-class projects which will meet their aspirations and bring them the potential gains from this prosperous industry," said Goel.
He added, "We have an optimistic outlook on the future of real estate and the benefits it provides to both developers and buyers."
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