India’s real estate sector is seeing a sharp turnaround after two years of slump. Demand has been on the surge in the residential sector, with end-user demand driven by incentives offered by developers amid the festive season and government support.
Below are the sales numbers published by the real estate research firm Knight Frank for July-September 2022:
With economic activity in full swing, housing sales jumped in almost all major cities.
According to a JLL India study, housing sales in the top seven property markets have risen to 1.61 lakh units this year till September 2022. It has surpassed the annual sales performance registered in 2014. The housing sales peaked at 1,65,791 units in 2014, and the performance witnessed in the first three quarters of 2022 indicates that this year will scale a record number.
The real estate sector has rebounded despite various challenges faced during the pandemic. The demand for the real estate sector has exceeded the pre-pandemic level. The residential properties category primarily increased as buyers demanded larger houses with better amenities.
Key factors driving the rally in the real estate sector are as follows:
On an annual basis, the overall available inventory declined by 4% in Q32022 across the top 7 cities, including Mumbai, which remains a top contender in inventory levels.
State and Central governments have contributed to the real estate sector’s growth momentum.
2016 | 2020 | 2021 | 2026 | |
HNWI Populations (US$1m+) | 486,619 | 765,929 | 796,961 | 1,407,287 |
UHNWI Populations (US$30m+) | 7,401 | 12,287 | 13,637 | 19,006 |
Investor takeaway:
Real estate is an essential element of economic growth as it is a large part of personal and business wealth. By 2030 India is expected to be the world’s third most prominent real estate market. Central government’s estimates suggest that the real estate market will reach a market size of $1 Trillion by 2030, which is estimated to contribute 18-20 per cent to the GDP. The story of the sector is exciting & encouraging.
Having said that, an investor should think twice before entering any stock without assessing the risk appetite and asset allocation plan. It is better to accumulate stocks/mutual funds in a staggered manner through the SIP or STP route rather than putting a significant amount through a one-time route.
Market This Week
24th October 2022 (Open) | 28th October 2022 (Close) | %Change | |
Nifty 50 | 17,736 | 17,787 | 0.28% |
Sensex | 59,804 | 59,960 | 0.26% |
Stocks that made the news this week:
This Diwali, we present a portfolio that reflect both sector-specific and stock-specific opportunities. With 2…
Thank you for showing interest in taking a BTST position using our Delivery Plus product.…
Thank you for showing interest in the consultation on trading strategies!Our expert will reach out…
Even if you are a new participant in the stock market, the process of buying…
A company’s debt position can be gauged using the interest coverage ratio or ICR. This…
Muhurat Trading, a cherished tradition in the Indian stock market, takes place on Diwali, the…