Niranjan Hiranandani, Founder & MD of Hiranandani Group, has stated that the residential real estate market in India is poised for robust growth in the upcoming year due to substantial infrastructure developments and a resurgence in demand for homes. He also added that the Mumbai market would play a pivotal role in contributing to this growth.
As the National Vice President of NAREDCO, Niranjan Hiranandani predicts that the residential market in India will maintain its growth momentum in 2023, following a healthy double-digit growth in 2022. Despite interest rate hikes and price inflation, he expects the demand for residential homes to remain strong. He believes that the market will grow by over 10% this year, as he stated in an interview with Business Today.
According to PropTiger, the sales of residential properties surged to levels last seen in 2014, with 308,940 units sold in 2022. This marked a 50% increase from the 205,900 units sold in 2021.
The consistent increase in demand for homes has bolstered realtors' confidence, driving them to initiate more projects. Anarock Research's data reveals that new launches in the top seven cities surged by 42% to over 402,000 units in 2022, compared to 278,650 in 2021, marking the highest number of launches since demonetization. Anarock Research further estimates that new launches will escalate by 35% to over 544,000 units in 2023.
Anuj Puri, the Chairman of Anarock Group, stated that the year 2022 proved to be a turning point for the Indian housing sector, with sales surpassing the previous peak levels seen in 2014. In light of this surge in demand, developers concentrated on completing their ongoing projects.
As per Niranjan Hiranandani, the real estate market in Mumbai, the biggest in India, is on the cusp of a significant upswing, which will contribute to overall growth. With large-scale infrastructure projects such as the metro underway, he anticipates that the completion of
these projects over the next few years will result in the emergence of new micro-markets in and around Mumbai, making commuting more convenient. This, in turn, will spur further development in the real estate sector.
The Greater Mumbai region currently has eight under-construction metro lines that will bring new areas like Navi Mumbai closer to the city center. The operationalization of new metro routes has already led to the emergence of fresh micro-markets. According to Knight Frank, in February, most sales registrations were for properties in the Western suburbs of Mumbai, accounting for 57% of the market share. Similarly, in March, properties in Western suburbs constituted 62% of the market share. The Western suburbs have seen significant improvement in connectivity, ease of travel, and reduced travel time by more than half, following the commencement of operations of Metro Line 2A from Dahisar to DN Nagar and Line 7 from Dahisar to Gundavali, Andheri (E).
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