Indian Real Estate Sees Value Rise Despite Decline in Sales Volume

In a recent report, Square Yards, a leading real estate consultancy firm, revealed a 5% decrease in the registration of residential properties in nine major Indian cities until December 25 this year, amounting to 5.45 lakh units. Despite this decline, the overall value of the real estate market increased by 11% to reach Rs 4.46 lakh crore.

Square Yards compiled data from Pune, Thane, Mumbai, Navi Mumbai, Bengaluru, Hyderabad, Noida, Greater Noida, and Ghaziabad. The findings encompass transactions from both the primary and secondary markets. Notably, despite a decrease in the number of transactions, the premium and luxury housing sectors have significantly contributed to the value growth.

The Indian real estate market's resilience is evident in the face of declining sales volume. Experts predict that the market will stabilize by 2026, driven by a strong preference from homebuyers for new, quality projects. This trend is supported by disciplined supply chains and a mature buyer base that is increasingly focusing on mid-market segments.

Industry leaders attribute the market's stability to several factors, including a shift towards quality and sustainability. Homebuyers are now more discerning and are willing to pay a premium for properties that offer superior amenities and a higher standard of living. This shift has particularly benefited the premium and luxury segments, which have seen a surge in demand despite the overall decline in sales volume.

Moreover, the government's initiatives to boost the real estate sector, such as the Pradhan Mantri Awas Yojana (PMAY), have played a crucial role in maintaining market stability. These initiatives aim to provide affordable housing options and have helped to balance the supply and demand dynamics in the market.

Looking ahead, the real estate sector is poised for a period of growth and innovation. Developers are increasingly focusing on sustainable and smart living solutions, which are expected to attract a broader base of buyers. The adoption of technology and digital platforms is also expected to streamline the buying process, making it more convenient and transparent for homebuyers.

In conclusion, while the Indian real estate market has experienced a decline in sales volume, the overall value has increased, driven by the premium and luxury segments. The market's resilience and the growing preference for quality projects indicate a promising future for the sector.