Page 50 - Arvind 2024

Lac and Rs. 1 Cr, accounting for 34% of all housing transactions by the year’s end. Properties in the Rs. 25 Lac to Rs. 50 Lac price range were also in high demand, making up 31% of the sales, falling merely short off the leading category.
Moreover, apartments sized between 500 to 800 square feet represented a significant 40% of the market share by the end of 2023.
(Source: Hindustan Times, Knight Frank India)
Mumbai: Mushrooming infrastructure advancements, characterised by the completion of the Worli connector and the trans-harbor link, and enhanced connectivity, attributed to metro expansion and several other local infrastructure developments is
Growth drivers
Favourable macro-economic factors: The anticipation of India’s economy growing by 7.3% and increased investments signal a robust economic environment, fostering higher consumer confidence and spending power. This, in turn, boosts demand for real estate, as more people invest in housing and commercial spaces. Job creation from economic expansion enhances demand for office and residential properties. Consequently, the real estate sector benefits from heightened domestic and international investment inflows.
(Source: livemint)
Supported by a growing economy, the real estate sector in India
has transitioned significantly. India’s real estate sector enjoys forward and backward linkages with approximately 250 ancillary industries, and is one of the highest employment generators after the agriculture sector, accounting for 18% of the total employment. In terms of output, the market size of India’s real
contributing to Mumbai’s real estate dynamism.
The expanding metro network line, like MetroLine5 (Thane-Bhiwandi- Kalyan), which is linking Thane
to Mumbai, and the improving social and physical infrastructure development are key factors driving buyer preference for Thane as a residential location. The upcoming Navi Mumbai International Airport, slated to open in March 2025, is driving rapid growth in demand for property around Taloja, Old Panvel and Karjat.
The Mumbai Metropolitan Region (MMR) has experienced an acute rise in housing sales, as well as, completion of residential projects in CY 2023 despite the high home loan interest rates and a spike in property prices in the country. The
estate sector is currently estimated at USD 482 bn contributing 7.3% to the total economic output.. By 2034, India’s real estate sector is expected to expand to USD 1.5
tn contributing 10.5% to the total economic output.
(Source Knight Frank)
Most preferred asset class: In 2023, highest level of investments were made in the Indian real estate sector since 2020. The number
for these investments stood at USD 5.4 Bn, which is 10% higher
in comparison to 2022. The office segment continued to contribute the largest to the segment
with 56% share in total inflows. Furthermore, the popularity of real estate as an investment option
is expected to grow among the Indian population. Despite the growth and popularity of digital investment options, traditional asset classes like real estate continue to hold their ground in terms of demand and investment attractiveness.
(Source: Colliers, Business Standard)
Supportive demographics: The demand for real estate as the
region also witnessed the highest completion of housing units in CY 2023 at 1,43,500 units. MMR saw a 40% jump in housing sales in CY 2023. A total of 1,53,870 houses were sold in MMR in CY2023
as against 1,09,730 units sold in CY2022.
(Source: Livemint, Anarock)
Mumbai’s rank has improved to 8th on Knight Frank’s PIRI’s index in 2023 as compared to 37th rank in 2022 which is a phenomenal jump of 10% year-on-year growth in terms of annual luxury residential price rise. This jump has marked
a place for Mumbai in the world’s top 10 leading luxury residential markets.
preferred asset class is primarily driven by millennials between 25 and 40 years of age. According to a survey, 52% of millennials chose real estate as their preferred asset class, higher than the other age groups. The Generation X cohort between 41 and 56 years follows with 30%, while Generation Z, aged between 6 and 24 years and Baby Boomers, aged between 57 and 75 years, make up 11% and 7%, respectively. This highlights the changing preferences of investors and underscores the need for real estate developers to cater to the requirements of millennials, who are showing significant interest in investing in real estate.
(Source: Anarock report)
Market up-cycle and strong baseline: The CY23 residential demand was at a 15yr high, leading to an all-time low inventory overhang and a decadal high average pricing growth of ~15% YoY, based on a report by Anarock. The real estate sector is anticipated to continue its upward trajectory, bolstered by shifts
in lifestyle, a growing demand for modern facilities, and the
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