Kolkata / New Delhi, Dec 21 (FN Bureau) India’s residential sector continued to break new records in 2023, and is expected to register the highest sales since 2008 at around 260,000 units, according to global real estate services firm JLL. The growth momentum currently seen is expected to be carried forward in 2024 as well, JLL said in its latest report titled ‘2023: A Year in Review’. The residential market is experiencing a strong demand and ample supply, indicating its resurgence and continued growth this year. Residential sales in the first nine months of 2023 reached 196,227 units, which is 91 percent of the total sales in 2022, the report said.
“It is interesting to note that residential sales broke all records with average quarterly sales of over 65,000 units till the third quarter of 2023. In 2024, we expect residential sales to be around 290,000 to 300,000 units on the back of robust demand and quality launches,” it said. In the first nine months of 2023, there was a significant increase in launches, reaching a record of 223,905 units, showing a healthy year-on-year growth of 21.5 pc. It is anticipated that by the end of 2023, the expectation will be around 280,000 launches. “Despite the increase in home loan interest rates and rising prices, the overall sentiment in the domestic housing market remains positive, with homebuyers maintaining an upbeat attitude towards purchasing homes. In 2023, residential sales are expected to surpass 260,000 units and launched 280,000 units to reach a historic high post-2008.
“There is a possibility of a policy rate cut in 2024 provided the GDP growth and inflation support such a stance of RBI. In that scenario, we would likely see a further growth trajectory in the residential sector. In 2024, we expect the residential sales in the primary market to be around 290,000 to 300,000 units. Also, the sales guidance shared by various established developers reflect robust sales which are expected to get a healthy response from the buyers.” said Dr. Samantak Das, Chief Economist and Head of Research and REIS, India, JLL. From Jan to Sep 2023, 71 percent of the residential sales (around 138,925 units out of total sales of 196,227) were recorded in projects that were launched from Jan 2022 to Sep 2023. Furthermore, the robust supply pipeline from reputable developers indicates that the launches will continue to be strong in 2024, with an estimated range of 280,000-290,000 units.