Housing demand to scale new peaks in 2023, say developers

Despite growing to break new records in 2022, India’s real estate market demand is expected to scale new peaks in 2023. With housing sales growing further since January, industry experts and developers are bullish about maintaining the growth momentum this year.

According to Pradeep Aggarwal, Founder & Chairman, Signature Global, despite several challenges such as increasing input costs and rising home loan interest rates, the demand for housing has remained strong and uninterrupted. “This highlights the improved affordability of homebuyers and a shift in mindset towards considering long-term factors over short-term fluctuations. This resilience in the housing market is a testament to the strong demand for housing and the importance of homeownership in people's lives,” he said.

“The housing sector has undergone a transformation in recent years, becoming more mature and fundamentally robust. While there is significant demand from end-users, investors are also returning to the market. With a solid foundation and sustained growth, we anticipate that the sector will continue to progress steadily without major disruptions,” said Mohit Jain, Managing Director, Krisumi Corporation.

The enthusiasm among developers is not without a rationale. In spite of growing by high double digits in 2022, home sales spiked further in the recently concluded January-March quarter. “The residential market’s winning streak continued in the first quarter of 2023 with housing sales in top cities breaching the previous high of January-March, 2022. The quarter has recorded the highest ever sales in the last decade amid significant rise in demand for high-ticket priced homes (over Rs 1.5 Cr),” noted Anuj Puri, Chairman, Anarock Group. 

Home sales peaked to 113,770 units or 14 per cent higher over last year across top seven cities during the Jan-Mar, 2023 quarter. While new supplies or launches zoomed to 109,570 units (23 per cent growth y-o-y) during the last three months - compared to 89,140 units in Jan-Mar, 2022, when activities started to gain pace.a