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The financial year 2023 is likely to be a promising phase for the real estate industry in India. In recent times, the last fiscal recorded a phenomenal growth when we take a look at sales. According to a report, the last quarter of the FY 22 recorded a sale of 78,600 units in the eight major Indian cities. This figure is the highest in the last four years. Besides, there was a 9% increment in the quarterly sales on a year-on-year basis. In this regard, the highest growth was at Delhi NCR, where there was a 123% increment. Some of the other markets that witnessed a rise in property sales include Ahmedabad, Bangalore, and Hyderabad.
The real estate market in India looks in good shape in FY 23. The real estate firms are likely to gain profits as the sales increase. Here are some of the reasons that explain how the real estate sector can benefit in FY 23.
Rising Momentum of Commercial Leasing
Although the demand for commercial leasing was relatively low, it is likely to bounce back in this financial year. Compared to the figures in the pre-pandemic period, office leasing levels of Grade A offices is around 75% of the original levels. In FY 23, this is likely to get back to 90% to 95% levels. Particularly, the IT firms and technological giants would be ushering this comeback.
Low Rates of Home Loans
Experts believe that the banks and financial institutions will continue to give home loans at low rates of interest to the property buyers. This will also lead to an increment in demand for properties. The developers will tend to bank on the favourable market conditions. Therefore, they might offer attractive payment plans and discounts to the buyers.
All these factors can contribute to the development of a healthier real estate market in FY 23. This would benefit the key players in the industry.
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