Mumbai Metropolitan Region, NCR among strongest realty markets; Ahmedabad tops emerging list

Real Estate sector continues to witness a strong demand, particularly in the residential segment. Experts tracking the market believe that metro cities are likely to outperform despite the rising property prices and increasing interest rates as the home-buying sentiment remains robust.

As per Anarock, housing sales rose 54 per cent in 2022 to 3,64,900 units as against 2,36,500 units in 2021 across the seven cities namely, Delhi-NCR (National Capital Region), Mumbai Metropolitan Region (MMR), Chennai, Kolkata, Bengaluru, Hyderabad and Pune. 

The Indian real estate market is expected to exhibit a compound annual growth rate (CAGR) of approximately 9 per cent in 2023, said Aryaman Vir, Founder and CEO, MYRE Capital.

"The realty market is constantly evolving. Strong and positive momentum will continue to prevail due to the stable structural basis and increased demand. A favorable economic outlook will contribute to the market’s improvement," he said.

The biggest markets in the country, from the sales volume aspect, are Mumbai, NCR and Bengaluru. This will be followed by Pune, Hyderabad and Chennai, said Vivek Rathi, Director Research at Knight Frank India.

"Most of these markets are maintaining a strong growth trajectory this year on account of strong buyer sentiment, supportive affordability level, and resilient economic environment in the country," he said.

According to the industry participants, mid and premium value housing segment is doing well. This trend is likely to continue as the Indian economy poised for a strong growth and increase in the number of wealthy individuals.

On the other hand, a number of people are seeking more affordable and accessible options outside of the major metropolitan areas. This trend is being driven by a combination of factors, including rising costs in the city, better connectivity, and improved infrastructure.

As an emerging market, Ahmedabad is emerging as a strong market on the aspect of volume of real estate activity, said Rathi from Knight Frank India. "Increased economic traction in the Ahmedabad, Surat and Vadodara region coupled with relatively lower property costs and infrastructure bandwidth has been key considerations."

The central government focus on GIFT city and resulting interest from financial sector corporates is also providing a boost to the Ahmedabad market, he said.

Other than Ahmedabad, MYRE's Vir sees Pune, Hyderabad and Chennai as the top emerging markets, which as emerging hubs for IT, automotive, pharmaceutical and medical industry.

Businesses in a variety of industries, including IT, manufacturing, BFSI, startups, and others are expanding to new areas or opening satellite offices. The development of technology has improved real estate to the next level.

There is a growing preference for larger homes and gated communities as consumers are emphasizing on personal space and security in the post-pandemic world, said Vir from MYRE Capital.

"Digital interventions are playing an increasingly important role in the buy, sell, and rent journey. From virtual tours to online transactions, the use of technology is streamlining the process and making it more accessible to a wider range of consumers," he said.
 

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