Residential sales in India poised to breach decadal high this year, says real estate consultancy firm Coldwell Banker Richard Ellis (CBRE)
- IBEF
- September 29, 2023
According to a survey by real estate firm CBRE, with 150,000 units already sold in the first half of 2023, home sales in India are predicted to reach 300,000 units, the greatest amount in the past ten years.
The launches this year are anticipated to reach a 10-year high, according to CBRE's "Indian Real Estate: Taking Giant Strides - 2023 Mid-Year Outlook" study. Notably, it is anticipated that this year's launches and sales of homes in India will be significantly higher than the averages of the previous five years, which were 187,000 units and 184,000 units, respectively.
Home sales between January and June exceeded 150,000 units, surpassing sales reported in the same period last year by 4%. It was 6% higher than the sales in the second half of 2022. The report also stated that developers launched over 150,000 new housing units in the first half of year 2023, an increase of 11% annually, because of strong demand.
According to CBRE, greater building costs and increased demand have caused the price of mid-range homes in India to surpass the Rs. 1 crore (US$ 120.19 thousand) threshold. The price range of Rs. 1-1.5 crore (US$ 120.19-180.29) is expected to see considerable demand in the upcoming months. Between January and June, it accounted for roughly half of all home sales.
According to Chairman and Chief Executive Officer (India, South-East Asia, West Asia & Africa), CBRE, Mr. Anshuman Magazine, unlike Western countries, the home loan rates in India have stayed relatively stable for a while, and this has led to higher demand for homes.
Notably, the Reserve Bank of India (RBI) stopped raising the repo rate in April after increasing it by a total of 250 basis points. Along with affordability, Magazine also blamed Indian consumers' evolving preferences for a rise in residential sales of more expensive homes.
He further mentioned that the mentality of younger people has changed. Everyone wants more room. The focus used to be on the size of the ticket, but now customers want more space. A better lifestyle is also prioritised, particularly in the wake of the Covid-19 pandemic. Aspirations have increased dramatically.
The report also stated that customers now look at other factors like health and safety, sustainability and integration of smart technologies before buying a home. Factors including the developers' reputation, capacity to execute, and financial stability will continue to influence buyer interest. Tier-I developers steadily led the market in terms of new launches and sales from 2018 to the first half of 2023, supported by their established delivery track record and strong market reputation.
Disclaimer: This information has been collected through secondary research and IBEF is not responsible for any errors in the same.
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