The Indian real estate market is expected to continue its upward trajectory in 2023, with demand for housing remaining strong. Despite the challenges posed by the COVID-19 pandemic, the market has remained resilient, with key housing markets experiencing significant growth in the first nine months of 2022. Cities such as Mumbai, Bangalore, and the National Capital Region have seen rising sales, with the third quarter of 2022 registering the highest unit sales so far.
This growth is being driven by factors such as government assistance, a desire for health and financial security, and a wealth of housing options. The market is expected to provide greater opportunities for appreciation in the coming year, with double-digit growth figures being anticipated. Real estate investments are surging in India, with investors rushing to buy residential and commercial properties, driven by appealing rental returns and potential for future price appreciation.
Real Estate Price Trends In Major Metro Cities
The Indian real estate market saw an increase in housing transactions in 2022, resulting in price increases across much of the country. All eight of the largest metropolises in India, including Ahmedabad, Bengaluru, Chennai, Delhi, Hyderabad, Kolkata, Mumbai, and Pune, recorded increases in the housing price index (HPI) between September 2021 and September 2022. The composite HPI, which is based on market prices in 50 cities across the country, also increased by 5.1% during the year ending September 2022.
However, there were variations in the annual HPI market price with an increase of 37.7% in Bhubaneswar and a contraction of 6.5% in Indore in the quarter ending September 2022 compared to the previous quarter. Overall, the Indian real estate market is showing positive signs of growth and resilience, with many cities experiencing a rise in demand for housing and potential for appreciation.
MUMBAI:
Mumbai, the financial capital of India, has seen a significant improvement in its prime residential real estate market, making it one of the top 20 most expensive prime residential markets in the world. According to the 2022 PIRI (Prime International Residential Index) report, Mumbai ranks at the 18th position, a significant jump from its previous position of 92 in 2021.
The report indicates that Mumbai's premier real estate market saw a 6.4% price increase, which has resulted in a rise in the PIRI 100 index to position 37. This growth is significant for the city, given that it has been struggling with a slowdown in its real estate market for the past few years.
In terms of affordability, Mumbai has also made significant progress. The data shows that the city has become 13% more affordable (in dollar terms) in 2018. This means that homebuyers can now acquire up to 113 sq. m. of top residential real estate with one million dollars.
This improvement in Mumbai's prime residential market can be attributed to several factors. The government's initiatives, such as the Real Estate Regulatory Act (RERA) and Goods and Services Tax (GST), have brought transparency and stability to the real estate sector. The reduction in home loan interest rates has also made it easier for buyers to invest in the market.
Additionally, the pandemic has accelerated the demand for larger homes with more open spaces, leading to an increase in demand for luxury residential properties. The city's prime locations, such as South Mumbai, Bandra, and Juhu, have seen significant growth in demand for such properties.
DELHI
IN
France
Germany
Greece
Saudi Arabia
Spain
United Arab Emirates
United Kingdom
United States
