Why FY 23 is poised to be a promising year for the Indian housing market. Experts explain
Premium- Real Estate: Reviving trends Likely to scale the Indian housing market to new heights in FY 23
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Indian real estate ended the last fiscal at a very strong footing, registering one of the highest growths in recent times. As per Knight and Frank's report, in Q4 FY 22, the eight major cities in India posted a total sales of ~ 78,600 units, the highest in the last 4 years. The quarterly sales jumped by 9% on a y/y basis. Delhi NCR registered the biggest growth, jumping by 123% Y/Y. Other markets like Bangalore, Ahmedabad, and Hyderabad also demonstrated a commendable jump.
A bumper year in the making
FY 23 is poised to be a very promising year for the Indian housing market. Most of the key real estate companies are expected to make good profits, as sales will soar.
"The demand will be backed by strong structural fundamentals such as an attractive demographic dividend, sustained growth in infrastructure, an upturn in urbanization, and a resurgence of the job market. The pandemic has taught everyone the importance of owning a home and this will continue to be a growth mobilizer. People with smaller homes will now shift to larger spaces and better communities," said Annuj Goel, MD- Goel Ganga Developments.
Commercial Leasing on an Upswing
After suffering from tepid demand, commercial real estate is also set to make a bounce back. Nakul Mathur, MD- Avanta India said that presently Grade-A office leasing is around 75% of the pre-covid levels. However, it is expected to climb to 90-95% in FY 23. The rebound will be driven by IT, ITeS, technology heavyweights, consumer internet companies, etc.
Low home loan rates
Shubham Arora, Director- Sheer Bulls India Pvt. Ltd said that the low home loan rates will persist, which will also help in widening the demand.
Meanwhile, to further capitalize on the ascending tendencies in the market, developers will continue to float discounts and attractive payment plans, he added.
Alternative assets
Apart from the stock market, fragility persists in other alternative assets such as FD, bonds, and gold and this will encourage the investor class in the real estate sector, said Shubham Arora
Many buyers have been waiting for the pandemic to get over. Now with the curtailment of cases and the situation seemingly under control, such buyers will make the move.
