Hyd epicenter of residential real estate activity in India

IRIS index (Buy), a key indicator of future demand in India’s major cities, which is trending at 131 points in December 2023, has achieved 83 per cent of its historical peak. This trend indicates a positive market outlook for the forthcoming months

Hyderabad: Online homebuyer activity, positions Hyderabad, Mumbai, and Pune as the driving force in the Indian residential real estate sector’s anticipated continued growth in 2024. These cities are highlighted as the epicenter of intensified market activity, poised to significantly shape the sector’s narrative in the upcoming months, a report from Housing.com said.

In support of this prediction, Housing.com released IRIS index (Buy), a key indicator of future demand in India’s major cities, which is trending at 131 points in December 2023, achieving 83 per cent of its historical peak. This trend indicates a positive market outlook for the forthcoming months, the company said in a release.

Dhruv Agarwala, Group CEO, Housing.com, said: “2023 stands as a landmark year in the Indian real estate sector, characterised by exceptional growth and resilience. Despite challenges like elevated interest rates and global uncertainties, the industry has demonstrated robustness. The RBI’s decision to pause rate hikes in April, coupled with pent-up post-pandemic demand, has significantly bolstered buyer confidence. A noticeable uptick in residential demand is evident across various market segments, heralding a promising 2024.”

Listing the purchase trends for 2024, the report mentioned an increased demand for larger homes. The trend towards larger home configurations, three and above BHK apartments, is gaining momentum. Search queries for these spacious layouts have escalated six fold year-over-year in 2023, indicating a shift towards larger living spaces. High-end apartments are in the spotlight for 2024. The demand for luxury apartments, particularly in the Rs 1 - 2 crore bracket and above, is expected to soar in 2024. This segment has seen more than seven times increase in online property search volume year-over-year in 2023.

Ankita Sood, Head of Research, Housing.com, said: “2024 is well poised for taking the sector forward. We expect good momentum in both, property buying and renting as our IRIS index which tracks upcoming demand, estimates northbound movement. Property prices surged 15-20 per cent from pre-Covid levels and monthly rents saw a spike of 25-50 per cent in key areas of cities driven by the service industry.”

According to the Consumer Sentiment Outlook, majority of homebuyers are showing preference for direct purchases from developers, indicating a renewed trust towards new property developments as compared to resale properties. Hence, significance of gated communities and communities with ready-to-move-in properties are expected to play a crucial role in home purchases in 2024.