The report ‘India Real Estate H1 2023’ tracks the ongoing developments that have impacted the residential and office segments across the top 8 cities.
Among the eight Indian residential property markets reviewed by by Knight Frank India – a leading property consultant–, Ahmedabad is the cheapest. A report released by the firm analyses real estate growth, both residential and commercial, of major Indian cities and the way the industry is on its way to recovery after the Covid-19 induced troubles.
“…high affordability, comparatively lower prices per square foot, and an improving local economic environment remain compelling drivers for the Ahmedabad residential real estate market and should help support market volumes in the reminder of the year,” said a report released by the firm.
Ahmedabad, according to the report, is among the smallest office markets in the country with annual transaction volumes rarely exceeding 0.1 mn sq m (1 mn sq ft).
“However, 2022 was a year of robust recovery for the Ahmedabad office market with occupier demand rebounding from pandemic lows and scaling up to 0.2 mn sq m (2.2 mn sq ft) during the year,” the report said.
Mumbai continues to maintain its position as the largest market in terms of real estate sales with sale of 40,798 units in the first half of 2023. However, the report said that any further rise in mortgage rates and property prices will have an impact on consumer sentiment.
Chennai as a major commercial and industrial hub and its emergence as an IT hub has generated abundant job opportunities, the report said adding that, thereby stimulating the demand for residential properties within Chennai. “The increase in price post COVID-19 in a calibrated manner is an encouraging sign and can be viewed as an indicator that the market is on its way to recovery,” the report said about Chennai, after mentioning that “the growth in sales has been stable in H1 2023”.
However, the report said the Chennai commercial real estate has been on a strong trajectory as the city has recorded an all-time high of office leasing during H1 2023, with the backing of a strong underlying economy, talented workforce, well-developed infrastructure, and comparatively lower occupancy costs.
In Hyderabad, residential sales for Hyderabad continue to grow despite the state facing the highest consumer price inflation in the country during the period under review.
While the residential real estate market in Kolkata, the report said, continues to benefit from the 2% stamp duty rebate and the 10% rebate in circle rates which have been further extended to 30th September 2023 as per the State Budget announcement earlier this year.
“In H1 2023, the National Capital Region (NCR)’s primary residential market witnessed steadfast homebuying demand. However, the conspicuous annual growth in demand and supply parameters in the half yearly periods of 2021 and 2022 due to the pandemic softened during this review period as the market seems to have stabilized,” the report said.
In Bengaluru, despite the increase in prices, affordability continues to remain high and is expected to support demand for the reminder of the year.
The report ‘India Real Estate H1 2023’ tracks the ongoing developments that have impacted the residential and office segments across the top 8 cities.
