Year-ahead -Top realtors expect 10-15% jump in home sales

Year-ahead :Top realtors expect 10-15% jump in home sales

Backed by surge in sales of premium and luxury residential units, top property developers expect 10-15% jump in units sold next year. “A strong pipeline of supplies is being developed. There has been a surge in real estate demand in metro and tier 1 cities due to rising disposable incomes and better employment opportunities among Indian demographics,” said Niranjan Hiranandani, managing director at Hiranandani group.

For 2024, the surge in demand is expected to result in a 10-12% increase in property prices, along with a snowball distribution of commercial and retail space., Hiranandani said. He expects 10 to 15 % growth in residential sales in 2024.

With a sale of nearly 476,530 residential units, 2023 has seen decadal high residential sales in top seven cities , as per Anarock. Units priced Rs 1.5 crore and above constituted 24-25% share in overall sales in 2023, and premium properties priced between Rs 80 lakh to 1.5 crore accounted for another 24%.

Sanjay Dutt, managing director and CEO of Tata Realty & Infrastructure said that with a continued preference seen for larger living spaces and upgraded lifestyles, the demand is unlikely to slowdown in the premium housing segment.

The surge in demand for luxury housing has been a key driver for the 26% CAGR growth in Tata Realty’s residential portfolio , Dutt said.

“Developers will be targeting a younger buyer profile who are looking to upgrade towards premium properties with fine-tuned launches that cater to larger homes and evolved homebuyer needs.,” Dutt said.

However , Dutt does notanticipate a significant rise in prices, ” it would grow linearly to match the supply and demand,” he said. Tata Realty plans to launch 10 million sq. ft. in new projects over the next two to three years, aiming for an anticipated revenue of Rs16,000 crore.

Venkatesh Gopalakrishnan, director group promoter’s office, MD & CEO – Shapoorji Pallonji Real Estate (SPRE) said the real estate sector saw over 90% growth in demand for luxury homes.

“This surge not only mirrors the aspirations of a growing middle class but also reflects the changing preferences of discerning homebuyers. The sector witnessed an unprecedented interest in premium residences driven by factors such as urbanisation, evolving lifestyles, and a renewed focus on quality living,’ he said.

The upcoming year holds potential for those exploring emerging locations, innovative projects, and untapped geographical landscapes within the real estate sector, he said.Viswa Prathap Desu, chief operating officer-residential, Brigade Enterprises said “We anticipate luxury residential sales to be the focal point in 2024, with a growing demand for larger homes in expansive integrated enclaves. Our upcoming launches will primarily align with this trend. ” While Brigade will continue to have launches in Bangalore, it is also planning luxury offerings in Chennai and Hyderabad, he said.“Additionally, we are dedicated to enhancing the sustainability quotient in our projects, recognizing its increasing significance in the years to come,” Desu said. Swaroop Anish, executive director – business development-Prestige Estates Projects said they expect prices to strengthen 5-7 % for under construction options and ready property even 10-12% as there are shortage of quality options.“Anish said they would be enhancing their sales numbers with the numerous launches planned.