(Photo : ROBOUST GROWTH)
ROBOUST GROWTH

• The Indian housing market sold over 225,000 units in the first nine months of 2024, with 215,000 new units entering the market.
• The sector is expected to surge during the festive season, with a strong demand for high-end/premium categories.
• A shift in consumer preference towards high-end developments is anticipated, especially in markets like Noida, Bengaluru, Pune, and Chennai.
• Equity investments in the real estate sector have increased by 46%, amounting to $8.9 billion, indicating a positive future outlook.

The Indian housing market has shown a remarkable resilience and growth, with over 225,000 units sold in the first nine months of 2024, according to a report by real estate consultant CBRE. This robust performance is a testament to the sustained positive sentiment in the housing market, which has spurred developers to launch new projects and additional phases. Consequently, approximately 215,000 new units have entered the market during the same period.

The report further highlights the sector's strong performance in the first half of 2024 and anticipates a surge in both sales and new launches of residential units during the festive season. This prediction is based on the sector's historical tendency to peak during this period, a trend that has been observed in previous years as well.

In addition to the overall growth in the housing market, the report also sheds light on the changing dynamics within the sector. It predicts a strong demand for high-end/premium categories, specifically in the price range of Rs 1 to 2 crore and Rs 2 to 4 crore.

Shift in Consumer Preference and Market Dynamics

This shift in consumer preference is expected to be more pronounced in traditional mid-end segment-dominated markets such as Noida, Bengaluru, Pune, and Chennai, which are anticipated to increasingly gravitate towards high-end developments.

Parallel to the surge in housing sales, the Indian real estate sector has also seen a significant increase in equity investments. The report reveals a 46% surge in equity investments, amounting to $8.9 billion during the January-September period. This surge is attributed to a rebound in the office leasing market, strong disposable incomes, and an unprecedented risk appetite for consumer spending and home buying.

Anshuman Magazine, Chairman and CEO-India, South-East Asia, Middle East, and Africa at CBRE, expects sustained capital inflows in both traditional and emerging sectors in the upcoming quarters. He believes that institutional and collective vehicle investors, along with developers, will drive the overall capital flows.

Equity Investments and Future Outlook

This prediction is supported by the fact that domestic investors took the lead with around 79% share in equity capital inflows in July-September 2024. The report also highlights a record flow of investments in the first nine months of 2024, a trend that is expected to continue given the strong performance of the sector.

This surge in investments is not an isolated phenomenon but is part of a broader trend of increased capital inflows into the Indian real estate sector. In conclusion, the Indian housing market has demonstrated strong performance in absolute terms, with a record number of units sold and new projects launched.

The sector has also attracted significant equity investments, indicating a positive outlook for the future. As the festive season approaches, both sales and new launches of residential units are expected to remain elevated, further bolstering the growth of the sector. The robust performance of the housing market and the surge in equity investments underscore the resilience and growth potential of the Indian real estate sector.