India’s real estate is currently experiencing an upswing, marked by a notable recovery in residential property prices as well as an increase in rental yields. According to the recent data by real estate research and property consultancy firm ANAROCK, in the first half of 2023, the total sale of houses across top seven cities in India was close to 2.29 lakh units. This is the highest sale in the first half of a year in the past one decade.
In the backdrop of these facts, a key question which weighs high on investors’ minds is: Will this momentum in sale of houses continue in the second half of 2023? A consensus has developed which points out that the momentum in sale of houses will continue in the second half of 2023.
Let us understand why there is a strong likelihood that real estate sales in the second half of 2023 will be equally good as in the first half:
Changing Ground Realities
In the first half of 2023, India’s residential market recovered after a prolonged period of no or weak business in and post the pandemic. According to a report by property consultant Knight Frank India, India’s residential market breached a nine-year high in terms of annual residential sales in 2022 in an inflationary environment that caused increasing concerns on economic growth across the world.
The report stated that the demand for houses remained consistently high in the first half of 2023. It noted that the industry continues to consolidate. It has been observed that big developers who have been able to withstand the challenges triggered by the pandemic have been acquiring and starting new residential projects. Developers share in the media that there is not only demand for readymade inventory of houses but also for under-construction inventory.
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