Harshvardhan Patodia, President Credai
The momentum in FY22-23 points to a sustained growth of real estate in 2023, owing to stable economic outlook and increased demand.The changes in policies in the upcoming union budget, particularly relaxations for home buyers, may further boost the demand and growth in 2023.Tier 2 and Tier 3 cities are quickly establishing themselves as real estate hubs with a healthy housing market supporting overall infrastructure expansion. In FY23, these cities will compete with metros and offer a diverse range of residential and commercial investment opportunities. With asset classes like warehousing and data centres further adding to the growth, the overall outlook for real estate looks positive though inflation and increasing interest rates may impact the demand in the short run.
Niranjan Hiranandani, Founder & MD, Hiranandani Group and Vice Chairman, Naredco
The conducive interest rate regime, rise in consumers’ home ownership sentiment , improved home affordability etc, helped real estate growth in 2022. There has been accretion of housing demand in metro regions and even tier 2 cities due to a spurt in job opportunities, mushrooming of business districts and well planned infrastructure development . The revival in rural consumption is powering housing demand. While the fear of a global recession and continuous rise in interest rates hangs over 2023, developers are optimistic that the uptick in sales should continue for a while. However, if the rates cross a certain threshold , it may hit the sales. The sustained homebuying demand buoyancy may dip if interest rates cross the upper limit of 9.5%, leading to demand correction.
Shishir Baijal, Chairman & Managing Director, Knight Frank India
On the back of a turnaround year(2022) for real estate growth , 2023 should see further growth. For the commercial segment, the current year is expected to record substantial YoY growth in leasing despite global headwinds. While global corporations may still demonstrate some restraint towards growth of their India , the Indian conglomerates continue their growth , leading to greater demand for office space. The retail real estate will see some consolidation. With end users returning to malls, retail realty will see a balanced and sustained growth. E-commerce driven by the digital economy , will drive the growth of warehousing spaces in both metros and Tier 2-3 cities.The strong trend of home ownership in 2022, will continue with demand rising for both affordable and higher segments.
Overall, with global and domestic inflation getting controlled by mid-2023 and domestic growth set to gain momentum, there are positive signs for real estate growth in 2023.
Autif Sayyed, Project Lead, Green Buildings, South Asia, International Finance Corporation(IFC)
This year a new trend of international investors’ strong focus on climate projects will gain momentum. In fact, climate is now at the forefront of most major real estate investors for several reasons.Green building investments have shown better financial performances and future performance of green portfolios has lower risk of climate impact. Considering this, it would be logical to assume that climate-focused residential investors in India, especially international investors will be driving the green affordable housing sector in 2023 and beyond.
Shivam Mehta, CEO, Indiassetz
The year 2023 will be as vibrant as 2022 or better for the residential market provided possible global recession, inflation and and interest rates do not play spoilsport. In view of the prevailing industry sentiment, I expect that we will be able to carry forward the strong and positive momentum from 2022 and present investment opportunities in the Indian real estate for NRIs and HNIs.
Nayan Raheja, Director, Raheja Developers
A strong demand for homes across segments has augmented the realty sector growth post-pandemic . While the luxury category has seen visible foreign and NRI interests, plots have also witnessed great traction with growing price appreciation. Farmhouses remain a rich class indulgence while independent floors are becoming a preferable investment category for home buyers who prioritize personal space and privacy. The realty sector projects a positive growth and looks towards another year filled with rising customer engagement.
Amit Modi, President Credai, Western UP
In 2022, the realty sector edged towards regaining its pace and there was a revival of growth in the property markets. Despite facing many headwinds in the form of inflationary onslaught, rising interest rates, increase in construction cost, real estate investment has emerged as a stable and resourceful asset and this has kept the housing demand buoyant. With the homeownership process becoming more buyer-friendly with the integration of technological advancements, it will bode well for 2023.
Amit Jain, Director, Mahagun Group
The year gone by proved to be a fairly good year for the real estate sector, especially with luxury markets prospering on the back of strong demands from HNIs and with the advent of NRIs in the real estate space. The year showed positive signs of growth right from the beginning. Moving forward, the real estate sector continues to stay strong.
Harpal Singh Chawla, Director, Spaze Group
Despite regional and global economic pressures, there has been a strong demand for real estate projects , especially for the commercial segment including SCOs and mixed use projects. Property buyers have realised the importance of benefits of investment in property for long-term appreciation Gurgaon in the NCR especially Dwarka Expressway has seen significant price growth and it promises to be an attractive area for property buyers and investors in 2023.
Gaurav Kapur, Founder, BroBazaar
There has been an increasing demand for residential property in all categories from affordable to super luxury and this is likely to stay strong in 2023. Along with this the trend of home upgradation for a good lifestyle will continue. Also as businesses send more employees to offices, the demand for office space should increase in the new year. Indian retail will enter a new phase of growth that will be more balanced and sustainable. In 2023, we will also see some great proptech products revolutionising the real estate sector.
Shesh Rao Paplikar, CEO & Co-Founder , BHIVE Group
The year 2022 was a year of flexible workspace revolution as corporates preferred OpEx to CaPex model in the backdrop of hybrid working and volumes transacted by flexible workspace grew 380% YoY. The year 2023 will prove to be a game-changer for commercial real estate with immense potential for growth. Key trends expected to grow further include evolving business models, increasing investor activity, deeper geographical expansion, increased efficiency and tailormade solutions for coworking space.
Ritu Ahlawat, CEO, InvestinPRO
Despite high interest rates, global recessionary pressures, supply chain fluctuations,the healthy buyers’ demand has helped the realty sector back on track with augmented sales. The performance of the realty sector , especially residential, was impressive in the face of adversities. Even the commercial sector picked up pace. In 2023, the residential, commercial sector and mixed use (SCOs) will see significant growth.
Rajesh K Saraf, MD, Axiom Landbase
Several key trends that marked the strong recovery of real estate in 2022, will continue to drive realty growth in 2023. These include efficient projects catering to the needs of home buyers. rise of the luxury segment, buyers’ strong desire to own their private spaces including plotted developments, good performance shown by SCOs and strong traction by Tier 2 cities.