FY23 Could Be A Sweet Spot For Indian Realty Growth

Tenor

Crystal ball gazers, aka international property consultants are finally speaking in unison, and all the predictions are leaning towards a good FY23 for India's real estate sector. 

So Far So Good: Per Knight Frank's recent report, Q4, FY 22 saw India's eight major cities post a total sales of around 78,600 units, the highest in the last 4 years. Also, quarterly sales jumped by 9%, YoY, with Delhi NCR registering the biggest growth - 123% YoY. 

What's Going Right?

Per industry veterans, a host of demand boosting factors have come together in a blue-moon-ish kinda situation, for instance:

📎 A sustained growth in infrastructure, 

📎 An increase in urbanization, and 

📎 A recovering economy leading to large scale hiring. 

Plus, the Omicron-Delta tag team event has shown folks the importance of owning a home. Also, people with smaller homes are now shifting to larger ones nestled in better communities, irrespective of their suburban pin codes. 

What Can We Expect?

Office Real Estate: Presently, leasing of Grade-A offices is at 75% of pre pandemic levels, but this is expected to climb to 90-95% in FY 23, riding on demand by IT, ITeS, technology heavyweights, consumer internet companies, and others. 

Easier Financing: Low mortgage interest rates continue to ensure lower-than-ever EMIs per lac for home loans availed, while developers are sweetening deals with discounts, freebies and better payment terms, all leading to improving home sales. 

Fence Sitters Are Jumping: Many homebuyers who were waiting for the pandemic to subside are feeling the heat from their mothers in law now, and they have no lockdown card left to put down on the table. Such buyers are expected to make the move in FY23 as well.