Page 48 - Arvind 2024

Based on a report by CBRE,
the Indian residential real estate market is witnessing a significant shift, with over 40% of the homes sold in 2023 being from newly launched projects. This indicates a move away from the earlier preference for ready-to-move
or near-completion properties. The sale of 40% of the newly launched homes in top cities highlights a growing confidence among homebuyers in investing in new projects. This shift can
be attributed to the dominance
of financially robust branded developers known for their reliable project completion history over the last two to three years, especially after facing project delays in the past.
Key demographics
Ahmedabad: According to the Knight Frank Affordability Index 2023, Ahmedabad is the most affordable housing market in India. This distinction can be principally credited to the government’s urban planning efforts designed
at accommodating the city’s expanding population. Since 2006, the municipal area of the city has extended from 186 sq
km to its present 466 sq km.
This enlargement has played a critical role in maintaining an equilibrium between population growth and the city’s built-up area. Ahmedabad has majorly succeeded in avoiding the high congestion often seen in the city centers of other Indian cities, while enabling low-density planned development in its outskirts.
The city witnessed a 17% increase in housing sales in the fiscal
year 2023 as compared to
2022. Moreover, it witnessed an 5% increase in housing project launches. New home launches increased by 5% YoY from 21,201 units in FY22-23 to 22,307 units in FY23-24, recording a decadal high for the city. While the city saw
the share of home sales valued at
During the year gone by, India’s premium and luxury real estate market witnessed remarkable activity, demonstrating a 75% year- on-year growth primarily fueled
by strong demand for properties valued at INR 2 Cr or more. This specific segment emerged as an appealing investment avenue, particularly for high-net-worth individuals (HNIs) and non- resident Indians (NRIs) seeking portfolio diversification amidst global economic uncertainties. In fact properties valued at INR
1 Cr. or more grew from 26% of the market in 2022 to 40% of the market in 2024.
In terms of regional performance, the Mumbai Metropolitan Region (MMR) led with 27% of the sales
Rs. 50 Lac and higher increasing, it saw a decline in office space transactions in 2023.
2023 has ended on a strong note for the Ahmedabad office market as occupier sentiments have improved, and their increased willingness to ink longer term commitments bodes well for the market. Office space completions grew by 34% from 1.4 Mn square feet in CY 2022 to 1.9 Mn square feet in CY2023. Rents have also grown by 4% YoY in tandem, pushed by the record volumes seen in H2 CY23. India-facing businesses remained the dominant occupier in the city. Strong
thrust by both the state and central governments to transform Ahmedabad into an economic hub, coupled with its affordable real estate and widespread connectivity infrastructure, ensures Ahmedabad as an appealing choice for office occupiers
High affordability, comparatively low prices per square foot and an improving local economic environment remain compelling drivers for the Ahmedabad residential real estate market and should help support market volumes this year.
amongst top 8 cities, amounting to 90,314 units in 2023. Bangalore ranks third in the list, contributing to 18% of sales, with an estimated 53,709 units. Amhedabad and Pune showed strongest YoY growth of 17%.
Additionally, the year saw at least 97 land transactions covering over 2,707 acres nationwide, with at least 72% of the land designated for residential projects.
Finally, the interest rate cycle has also peaked and is expected to come down in the current year in response to lower inflation. This will result in lower borrowing cost which is very positive for real estate demand.
(Source: Economic Times, Zeebiz, Anarock)
(Source: Times of India, Knight Frank India)
Bangalore: 2023 marked another year of unprecedented growth
in Bengaluru’s real estate sector, with residential sales volume of 54,046 units, a nine year high. The performance is fuelled by
a focused approach towards sustainability, technological progress, and significant infrastructure enhancements. Upcoming infrastructure projects include the Blue Metro Line which will connect the central Silkboard to Kempegowda International Airport, the upcoming suburban rail corridors which will connect Bengaluru to Yelahanka and the peripheral ring road, which will encircle Bengaluru, alleviating traffic.
According to Knight Frank, in terms of ticket size, the sales
as well as the launches were concentrated in the mid and
the premium segment. During
H2 2023, 49% of the sales were concentrated in the mid segment (INR 5-10 mn) and 41% of sales were concentrated in the premium segment (above INR 10 mn), a significant improvement from 28% of the total sales during H2 2022.
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