In a recent report by real estate consultant Knight Frank India, it has been revealed that housing prices in India’s top eight realty markets have witnessed a year-on-year increase of 2-10%. According to the report, despite a marginal 1% decline in sales during the first six months of 2023, the residential sector has displayed resilience and potential for growth.
The bi-annual report from Knight Frank India highlights that housing sales dropped by 1% to 156,640 units, compared to 158,705 units during the same period last year. In contrast, gross office space leasing recorded a 3% increase, reaching 26.1 million square feet compared to 25.3 million square feet previously.
Experts, such as Naveen Kumar, director of Navraj Infratech, view the residential sector’s sales volume as a positive shift in market dynamics. Kumar noted that despite slight fluctuations, the demand for residential properties, particularly in the premium segment, has experienced significant growth. He predicts this momentum will continue, primarily driven by end-users and investors, especially in the high-end and luxury segments.
The Knight Frank data also reveals that luxury homes’ share in overall housing sales has risen while the demand for affordable housing has decreased. Rajjath Goel, MD of MRG Group, highlights the promising growth and development of the real estate sector, with the first half of 2023 witnessing the second-highest sales in the past decade. Buyers are increasingly seeking quality properties that fulfill their immediate requirements and serve as solid investment assets.
Despite rising interest rates on home loans and global headwinds, the housing and office markets across major cities have remained steady during the first half of the year. Mumbai saw an 8% decline in housing sales, while gross office space leasing increased by 9%. In Delhi-NCR, housing sales rose by 3%, while office space leasing increased by 24%. Bengaluru witnessed a 2% decrease in residential sales but a 10% decline in office leasing. Pune experienced a 1% dip in housing sales and a significant 30% drop in office space leasing.
Chennai observed a 3% increase in housing sales, while office space leasing more than doubled. Hyderabad saw a 5% growth in housing sales, but office space leasing declined by 8%. Kolkata recorded a 3% rise in residential sales, while office demand fell by 3%. Ahmedabad witnessed a 3% decrease in housing sales and a substantial 59% drop in office space leasing during the first half of this year.
Despite the minor decline in sales, the overall picture in India’s real estate market suggests a positive trajectory for the sector, with housing prices continuing to rise amidst market fluctuations.
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