The vision of owning a house is slowly getting clearer for buyers as residential real estate prices are beginning to see the promised correction on the back of hardening interest rates and poor transaction volumes.
53% of the developers saw a rise in buyer enquiries and engagement in 2023 compared to 2022. About half of the surveyed developers feel that residential demand would remain stable in 2024. Developers confident of an upward trajectory of housing prices in 2024. Nearly two-thirds of developers are willing to explore alternate segments like plotted developments, branded residences etc. within housing.
The land parcel at Hebbagodi is strategically located near Electronics City and is well-connected to other parts of the city, making it an attractive location for residential developments. The area is a desirable location for IT professionals working in Electronics City. The area has a well-developed social infrastructure, with major hospitals, international schools and retail, and the IT hub of Electronics City Phase 1 and Phase 2, located within a 5-km radius.
Between April and June 2024, residential supply witnessed the highest growth rate in the last 24 months, driven by the increasing availability of under-construction properties, shared the recently published PropIndex Report (April-June 2024) by Magicbricks, India’s leading real estate platform. According to the report, the supply of under-construction properties has increased by 11.7% QoQ, while prices have risen by 15.2% QoQ between April-June 2024. This surge has resulted in prices of under-construction properties surpassing those of ready-to-move properties in several cities such as Gurugram, Mumbai, Noida and Thane.
According to the report’s findings, Q1 2024 marked a discernible shift towards high-end properties among homebuyers. Notably, the share of properties priced at INR 1 crore and above in sales surged to 37%, a significant increase from the pre-pandemic levels of 2019, more than doubling in magnitude. During this period, there was substantial growth (50-55%) in demand observed within the INR 1-5 crore price bracket, closely followed by the INR 5-10 crore range, particularly evident in cities like Mumbai, Gurugram, and Bengaluru. This transition signifies a departure from purely budget-driven decisions towards properties that better resonate with buyers’ lifestyle preferences.
Of the eight major cities, Pune witnessed the steepest drop in unsold inventory levels. The 10% YoY decline in unsold units, highlights strong housing demand across the city. The reduction in unsold units coincides with a major 13% annual rise in average housing prices. This price growth was driven by substantial launches in the high-end and luxury segments. Key localities like Camp and Baner witnessed significant YoY price increases, ranging between 20-23%.
Puravankara Limited in the second quarter (Q2FY24) ending September 30, 2023 has reported sales of INR 1,600 crore, an increase of 102% Y-o-Y. Sales volume for the quarter stood at 2.01 msft, up by 89% Y-o-Y with a strong collection of INR 879 crore (+70% Y-o-Y).
Brooklyn Towers, spread across 8 acres of land houses a total of 1,305 residential apartments in 1BHK, 2BHK and 2.5 BHK units of 495 sq. ft to 1193 sq. ft. meeting the needs of the customers who appreciate contemporary living with the best-in-class amenities and offerings.
For generations, real estate leaders were cautious in changing their business models. But in recent years there has been a significant change. So far the numbers have been on the lower side, but Covid 19, has initiated companies to adopt digital solutions at an unprecedented pace. According to a survey, digitisation is taking precedence across the sector and more than 90 percent of the occupiers and developers are aiming to bring a technological shift in their business operations within the next five years.
Even as India’s middle-class grapples with the prospect of an uncertain future in their careers and financial ability – the main drivers of housing demand – the rise of India’s super-rich continues unabated. According to Credit Suisse report, there were an estimated 3.42 lakh dollar-millionaires in India as on mid-2018 who collectively held around USD 6 trillion. It is forecast that 5.26 lakh Indian dollar millionaires’ wealth will be around USD 8.8 trillion by 2023. Market fluctuations make very little difference to the personal networth of these individuals.