Developers unanimous that growth in residential segment will peak in 2023
Gurugram: Leading realty players in Gurugram are optimistic that the growth in the Indian residential segment will peak in 2023, as outlined in the recent ANAROCK report.
A revival in consumer sentiment, accelerating digitisation and initiatives by developers will play a pivotal role in shaping the growth trajectory. The report predicts housing sales to be more than 3 lakh units and new launches to increase by 2.62 lakh units in 2023.
"Amidst the pandemic, people are spending most of their time indoors, which has provided a fillip to the demand for spacious homes with state-of-the-art amenities for a superior experience. The rebounding of sales towards the end of 2020 indicates the resilience of the luxury segment as the sophistication benchmarks remain the same for elite homebuyers.
Amidst the vaccination rollout, the residential segment is seeing growth and better sales. Bolstered by policy push and growing realisation about the significance of homes, the residential segment is poised towards a higher growth trajectory in the coming months," Pankaj Bansal, Director, M3M.
The widening of the inoculation drive and economic stability prospects augur well for quick rebounding of the residential sector by the end of this year.
"The tapering of COVID-19 cases and upswing in economic activity has rekindled hopes of a swift recovery. The pandemic has reaffirmed the significance of homeownership that is set to rise against the backdrop of low-interest rates, conducive policies and initiatives by real estate players. The upcoming festive season, auspicious for buying a new home, is also expected to give a major push to sales. Overall, we foresee a robust residential demand for the remaining year," Ashish Sarin, CEO, Alpha Corp.
Overall, 2021 will witness better performance in residential real estate as opposed to 2020. Nevertheless, sales are expected to be lower than in 2019 - the recent peak year. This is due to the second wave derailing the sector, albeit temporarily, between April and June.
Going forward, the demand is expected to remain buoyant in the wake of stable interest rates, increased hiring in the job market and various initiatives by the government to mitigate the impact of the pandemic on real estate.
NCR is expected to account for 18% of sales and 15% of new launches. A combination of factors such as strategic connectivity, the rapid pace of infrastructural developments and employment prospects have made NCR a sought-after real estate hub. COVID-19 has reaffirmed the significance of owing spacious homes amid verdant greenery to maintain harmony with Nature. Subsequently, peripheries of cities such as New Gurgaon have emerged as realty hotspots. In a testimony to the green shoots of recovery, sales of residential units in NCR increased by 24 per cent year-on-year to 9,016 units during the first six months of 2021, according to a recent PropTiger report.
"The residential segment has witnessed an uptick in demand following the decline of the second wave of coronavirus. We foresee this momentum to sustain due to the regaining pace of business activities and revival of sentiment that will pave the way for growth by the end of this year. The initiatives by developers and conducive policy measures augur well for the residential demand to remain buoyant for the next 2-3 years. Going forward, location, amenities and superior lifestyle experience will be primary factors influencing a customer's decision to buy a home," said Ashok Kapur, Chairman, Krisumi Corporation.
"Nevertheless, COVID-19 has proved to be an inflexion point for the sector, reaffirming the significance of homeownership against rental properties. The work from home has emerged as the dominant undercurrent for shaping homebuyers' preferences. It has invariably prompted the rethinking of existing configurations in homes to accommodate a distinct workspace. Anticipating this trend at the beginning of 2021, we, at Krisumi, launched a new asset class 2BHK Plus Personal workspace in our flagship project, Krisumi Waterfall Residences, Gurugram. These residences are suited for the 'work from home (WFH) lifestyle for Indians working with multinational corporations and expatriates," he added.
The Haryana government has undertaken a series of initiatives to propel the sector. Furthermore, proposed large-scale projects such as Delhi Mumbai Industrial Corridor (DMIC), Regional Rapid Transit System (RRTS) and industrial sub-cities along the Kundli Manesar Palwal (KMP) Expressway will further accelerate real estate growth in the region and lead to a multiplier effect on the local economy.
"Flanked by Delhi - the national capital on one side and Manesar on the other, Gurugram's strategic location has made it a residential hub. It enjoys connectivity to prominent landmarks such as Indira Gandhi International Airport and New Delhi Railway Station. It has also witnessed tremendous up-gradation in infrastructure and today houses renowned companies, retail spaces, entertainment and recreation options. Upcoming developments such as ISBT and the Gurgaon-Faridabad metro rail link will further bolster connectivity and spur real estate growth in the region," Rahul Singla, Director, Mapsko Group, concludes.
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