If you’re considering buying a house in 2024 or investing in residential properties, it’s essential to stay informed about the rising rates and housing trends. The Indian housing market experienced significant developments in 2023, setting the stage for an intriguing 2024.
Let’s delve into the highlights of 2023 and explore expert insights on the real estate landscape, rising rates, and housing market predictions for 2024. Understanding these trends can be a game-changer for anyone navigating the housing market this year.
REFLECTING ON 2023:
Residential real estate sales in India reached the highest level since the peak seen in 2013, witnessing a 33% YoY growth, with a total of 4.10 lakh units sold during the calendar year 2023. In metro cities, the premium and luxury segments experienced a surge in sales, making it a record-breaking year both in terms of volume and value. Regulations like the RERA Act and insolvency laws played a significant role in creating a more transparent and secure real estate environment.
WHAT TO EXPECT IN HOUSING TRENDS 2024?
Experts foresee a 30% increase in housing sales, driven by a gradual decrease in home loan interest rates. Affordability is expected to improve this year, with property prices projected to increase by 10-12%. The optimism is fuelled by the anticipation of a 60-80 basis point repo rate cut in 2023. However, the upward pressure on property prices may persist due to rising material costs.
WHICH CITIES WILL BE PREFERRED FOR STAY/INVESTMENT IN 2024?
Tier 1 cities like Mumbai, Delhi, Noida, Bangalore, Hyderabad, Gurgaon, Ahmedabad and Chennai are expected to be bustling hubs for real estate. Tier 2 cities such as Vadodara, Chandigarh, Indore, and Lucknow are also gaining attention due to visible infrastructural growth.
WHAT PROPERTY TYPES WILL MOST PEOPLE INVEST IN?
In 2024, homebuyers are likely to favor spacious 2 BHK units in premium segments. Luxury housing, especially tech-integrated 3 BHK and 4 BHK options, will witness increased demand, particularly among high-net-worth individuals and NRIs capitalizing on the rupee’s record low. Alembic Real Estate’s new projects, Veda II and Kiara, are excellent options for investors looking for 2, 3 BHKs, and 4 BHKs falling under the premium and luxurious category.
WHAT WILL BE THE POSSIBLE DEVELOPER STRATEGIES?
In response to evolving market dynamics, developers are prioritizing the use of high-quality materials for construction, ensuring durability and longevity. Additionally, there’s a noticeable shift towards eco-friendly technologies, aligning with the growing demand for sustainable living options.
Despite challenges like material costs, affordability, and rising rates, the real estate sector remains resilient, reflecting the nation’s strong inclination towards homeownership. Whether you’re a buyer or investor, the real estate landscape will continue to evolve and adapt to changing times, emphasizing the importance of investing in the right properties with trusted developers.