MEDIA COVERAGE
September 22, 2023
The Trends of H2 2023 that can be Expected and its impact on the Real-Estate Sector.
Mr. Rakesh Reddy, Director, Construction and Architecture Magazine
Our Director Mr. Rakesh Reddy foresees a promising economic climate in India, with a projected 8% GDP growth. This outlook is expected to drive a notable surge in housing demand, attributed to factors such as increased GDP per capita, enhanced job market conditions, and urbanization. The real estate market’s resilience has been further fortified by substantial foreign investments, including contributions from international entities and NRIs, effectively mitigating potential domestic demand slumps.
He also notes the recent decision by the Reserve Bank of India to maintain the repo rates at a steady 6.5% for the third consecutive time. This strategic choice is anticipated to reinforce the housing market, offering stability to borrowers, particularly during the upcoming festive season. Premium housing segments, with prices exceeding Rs.1 crore, continue to witness sustained growth.
In light of the rising demand for housing and global disruptions in the supply chain, the predicted 5-10% increase in construction expenses for ongoing developments, potentially affects the overall housing costs, especially during the festive season. Additionally, there is a discernible shift toward suburban locales, primarily tier 2 and tier 3 cities, due to urban congestion, further bolstering economic growth and infrastructure development in these areas. The increasing emphasis on affordable housing, sustainable architectural practices, and the integration of health and wellness features, all of which are reshaping the real estate market. With favorable financing opportunities and regulatory support, the real estate sector is poised for substantial growth in the latter part of 2023.
