Significant increase in sales of upscale luxury homes: Report
The heightened demand in the residential sector supported by stable interest rates, coupled with strong occupier activity in Indias office market has been instrumental in a robust outlook for the realty sector for the next six months.
In 2023, high-net-worth individuals and investors have been incredibly attracted to India's luxury real estate. CBRE South Asia's data indicates a significant increase in sales of upscale luxury homes in the first half of the year 2023. In this period, sales in this category have increased by a staggering 130 per cent.
High Growth Prospects
Real estate developers and financial institutions have become slightly more optimistic about the growth potential in the realty sector for the next six months on festive demand and the country's economic growth, according to the Knight Frank-NAREDCO sentiment index.
Real estate consultant Knight Frank and NAREDCO have released their 'Real Estate Sentiment Index Q3 2023 (July-September 2023) report that captures the current and future sentiments towards the real estate sector, the economic climate and funding availability as perceived by the supply-side stakeholders and financial institutions.
A score of 50 represents a neutral view or status quo; a score above 50 demonstrates a positive sentiment; and a score below 50 indicates a negative sentiment.
The joint report stated that the current sentiment score has scaled down to 59 in the September quarter from 63 in the previous quarter due to the sudden outbreak of conflict in the Middle East and rising regional tensions between nations.
"The Future Sentiment Index witnessed a marginal uptick from 64 to 65 on the back of stakeholders' expectation of continued growth trajectory of Indian economy to support the performance of real estate sector for the next six months with expected higher demand during the ongoing festive season," the consultant said.
The Gurugram-based real estate firm Rise Infraventures recently announced that it has achieved a valuation of over Rs 250 crores since it started its operations in 2021.
Sachin Gawri, CEO and Founder, of Rise Infraventures Limited, said "Valuation is based on the company’s robust performance in the luxury realty segment and the massive expansion in customer base."
The heightened demand in the residential sector supported by stable interest rates, coupled with strong occupier activity in India's office market has been instrumental in a robust outlook for the realty sector for the next six months.
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