Indian Real Estate Sector Looks Confident as 2023 Comes Closer

As 2022 proceeds to its fag end, real estate players would be looking forward to what awaits the sector in 2023. Fortunately, the sector looks bright as we move closer to the next year. The last couple of years have witnessed the real estate sector in India recover from its instability. Following the pandemic, real estate players have benefitted from the powerful support from the government, enough growth opportunities, and an elevated buyers’ sentiment. Altogether, the realty sector in India is well-poised to continue with this positive growth trend in 2023.

In October 2022, the RBI increased the repo rate by 50 basis points. This was accompanied by inflationary pressure. The developers had to secure their margins while they deal with customers. Naturally, this resulted in a spike in property prices. A positive demand cycle is currently thriving in the sector. However, a spike in repo rates indicates higher interest rates on home loans. This is likely to take a toll on the spirit of the buyers. As per reports, there was a 4% quarterly increase in property sales between July and September in the top seven cities. In this quarter, 90% of the property sales took place in Mumbai, NCR, Pune, Bengaluru, and Hyderabad. In order to lure buyers, many lenders have also reduced home loan rates.

Although the conditions are turning challenging for buyers, the positive sentiment is still driving real estate sales. Naturally, the real estate economy is getting closer to the pre-pandemic days. Investors are also parking their savings in real estate funds and commercial properties. As the real estate market is not too volatile, it serves as an investment channel for many people.

Therefore, as we get closer to 2023, the real estate industry looks brighter. This would be a good opportunity for the residents to buy property as the property loan rates would become expensive in the coming years.