Govt support can be a catalyst in growth of residential realty market
India’s residential realty market is on a high-growth path. This is expected to be carried forward into 2024. For the records, residential sales in the first nine months of 2023 reached 196,227 units, which translate to approximately 91 per cent of the total sales in 2022.Interestingly, residential sales broke all records with an average quarterly sale of over 65,000 units till the third quarter. There are more reasons than one to expect residential sales to be around 290,000 to 300,000 units on the back of robust demand and quality launches. The demand for residential apartments will be backed by a robust supply pipeline with many branded developers having announced new launches and their entry into newer markets. Launches will continue to be strong in 2024, with an estimated range of 280,000-290,000 units, if one goes by the latest JLL study.The fact that 2024 is an election year, the demand drivers are likely to pave the way for a strong north-bound growth trajectory. Many developers have realigned their marketing strategies based on the current market dynamics, and this is clearly getting reflected in the increase in the number of launches in the higher ticket size projects.
Strategic land acquisitions at prime locations and along growth corridors in cities are also expected to strengthen the supply inflow across cities. If things move the way it has been envisaged, the launch of diversified products is also likely to gain momentum, including plotted developments, low-rise apartments, row houses and villas.One has to keep in mind that in a dynamic era of technological advancements and evolving consumer preferences, the real estate sector stands on the cusp of transformation, propelled by a demand for more than just opulence. Luxury, it seems, has found a new companion in the form of "smart homes," and a green revolution is sweeping through the residential landscape as sustainability takes centre stage.Experts are of the view that the advent of cutting-edge technologies has redefined the expectations of modern homeowners. No longer satisfied with mere extravagance, consumers are increasingly seeking residences that integrate intelligent systems for seamless living. The rise of smart homes, equipped with state-of-the-art automation and connectivity features, has become a defining trend in the real estate market.
A significant shift towards sustainable living is reshaping the very foundations of residential architecture. Right from the materials used in construction to incorporating eco-friendly technologies, the emphasis is on reducing the environmental footprint of homes.Having said all these, the sector faces many challenges as well. The quest for sustainability comes at a time when external factors are influencing property prices. The confluence of higher interest rates and supply-demand dynamics over the last decade has already set in motion an upward trajectory for residential property prices.Therefore, going forward, strong support from the government will be crucial and will play a catalyst in bringing in positive changes in the sector.
