2023 - A Year of Transformation and Challenges in Indian Real Estate

Indian real estate market witnessed one of its most rocking years in 2023!! There were deals, big deals and some of the biggest deals that Indian property markets have ever seen. Acquisition, IPOs, new project luanches and a lot of action indeed. 2023 has surely set up Indian real estate market to boom in the next coming years.

Let us have a look at some of the major facts and figures that shaped Indian real estate 2023

Indian Luxury Property Market Surges

The luxury housing market thrived in 2023. Pravin P, a Mumbai-based real estate broker, attributed this to homebuyers seeking spacious homes and higher living standards. Data from Anarock revealed a significant increase in luxury home sales, with about 24% of the units sold in the top seven cities being luxury homes, marking a 115% annual rise.

Artificial Intelligence Reshapes Real Estate

2023 marked a year where Artificial Intelligence significantly influenced the Indian real estate sector. Pritam Chivukula, vice president of CREDAI-MCHI, noted that AI revolutionized property searches with personalized recommendations, precise price predictions, and virtual tours.

It also streamlined property management, fraud detection, and improved customer service through chatbots.

Rishabh Siroya, president of the Nextgen committee at NAREDCO Maharashtra, added that AI facilitated real-time customer support and tailored property recommendations, simplifying the homebuying process. For developers, AI was instrumental in generating leads, analyzing trends, and summarizing key data points.

Infrastructure Developments Boost Real Estate

Anuj Puri, chairman of the Anarock Group, highlighted 2023 as a stellar year for Indian infrastructure, with several projects reaching completion and new ones commencing. The government's substantial investment in infrastructure had a direct positive impact on the real estate market. Notable developments like operational expressways, Metro lines in Tier I and II cities, and upcoming mega projects like Chennai Metro Phase-II and MTHL in Mumbai, are expected to open new micro-markets and extend development opportunities.

Affordable Housing Faces Setbacks

Affordable housing experienced significant challenges post-pandemic, struggling to recover. Anuj Puri pointed out that increased EMIs and rising property prices due to higher input costs contributed to this downturn. Anarock Research indicated a decrease in the sales of affordable homes, with a 10% reduction in total sales share compared to the previous year. To address these issues, a comprehensive approach involving government incentives, streamlined approvals, and technological advancements is being considered.

Surge in Property Prices

Anuj Puri shared that average residential property prices saw an increase of 8-18% in Q3 2023 compared to the same period in 2022. This rise was attributed to the escalating costs of raw materials and increased demand, with the average property price in the top seven cities rising by 11% within a year.