Mid-sized property developers expect India’s property market “boom” to continue over the next few years as the country recovers from the disruption caused by the Covid-19 pandemic.
India, like many countries around the world, has been experiencing a pandemic property boom, with falling interest rates prompting people to buy homes, leading to higher volumes of home sales. Developers and analysts hope this optimism will keep pent-up demand for residential units and household incomes growing, even as the central bank’s monetary policy tightening to tame inflation has made home loans more expensive.
It is “the start of a long boom cycle for the real estate sector for the next five years”, where demand will increase steadily over the next two to three years, said Parth Chhajer, developer of Arihant Superstructures Ltd. ., to BQ Prime’s Niraj Shah. .
Manan Shah, managing director of Man Infraconstruction Ltd., also expects the push to continue for a few years.
According to Dhaval Ajmera, Director of Ajmera Realty & Infra, “The resilience and growth potential of the Indian economy will support the favorable real estate cycle for seven to eight years.”
India’s property sector – among the top contributors to the country’s economic growth – is emerging from a prolonged slump for reasons ranging from a cash ban and a tougher housing law to an NBFC liquidity crunch that has leads to an accumulation of unsold apartments. The recovery, according to Knight Frank, is being helped by homebuyers’ need to improve their primary lifestyle and house prices relatively low to pre-pandemic levels.
Home sales, the real estate consultant said, rose 60% a year in January-June 2022 in eight major cities to 1,58,705 units, the highest half-yearly demand in nine years.