Housing sales increased 20% in top 6 cities

Amit Agarwal, CEO and co-founder, NoBroker.com, said: “The average rent growth across cities has been higher than the average wage growth, which has motivated potential home buyers to move up. Although fares may stabilize as more supply gradually arrives, they will not fall. The year has started on an excellent note with rising demand and rapid growth in property transactions.”

“The growth trajectory of the country’s economy, coupled with the controlled economic policy environment, has boosted buyer confidence. Although property prices continue to rise, we are expecting strong sales, indicating enthusiastic home buying sentiment and buyers’ determination to own physical assets. This approach is further enhanced by relatively affordable home loan interest rates, which currently range between 8.30-11.15 per cent per annum,” he said.

“It is interesting to note a new trend emerging among home buyers, indicative of a ‘K-type’ growth trajectory. People who earlier eyed properties within the price range of Rs 80 lakh to Rs 1 crore are now upgrading their preferences above Rs 1 crore. They are choosing larger unit sizes and properties within gated societies.” However, those who are initially considering homes between Rs 60 to 80 lakh are choosing more affordable options, which will expand their housing options. indicating a decline in. This difference in purchasing behavior underlines the diverse effects of market dynamics on different sections of the population, contributing to the segmentation of growth patterns.

Against the backdrop of surging demand, we have also seen some projects being snapped up within a day of their launch, underscoring the rapid pace of transactions in the market. Additionally, properties nearing completion are witnessing a significant increase in prices, adding to the enthusiasm among buyers to secure their purchase before moving in. Adding to this dynamic scenario, a clear trend is emerging where Grade-B builders command prices at par with their Grade-A counterparts, indicating leveling of the playing field in terms of pricing dynamics. Given the strong residential demand and rising input costs, property prices are likely to remain under sustained pressure, resulting in further appreciation. Furthermore, moderation in retail inflation in India has the potential to have a positive impact on real estate buyers, leading to increased affordability, improved borrowing conditions and a more favorable market environment for property transactions. NoBroker’s Annual Real Estate Report 2023 highlights investors’ enduring confidence in real estate as a key investment vehicle. This is evident from 74 per cent of participants taking the survey expressing preference over SIPs, stocks, gold and other more volatile options like Bitcoin. Among major cities, Delhi-NCR and Bengaluru account for 45 per cent of total sales. In fact, Bengaluru will see a growth of more than 25 per cent annually over 2023.