India's leading cities are projected to complete a record 560,000 residential units in 2023, a 39% increase from the previous year. This boost is driven by strict RERA guidelines, improved cash flows, technological advancements in construction, and alternative investment funds. The National Capital Region is expected to lead with 30% of total deliveries, a 97% rise from 2022. Despite looming global economic uncertainties, the robust growth and resilience of the Indian real estate sector render this milestone achievable.
The residential real estate sector in India is poised to see a historic surge in project completions in 2023, building on a trend set in 2022. This increase in completions is expected due to stringent guidelines enforced by RERA that mandate developers to adhere to pre-decided timelines, a measure aimed at minimizing the historical issue of project delays that have caused distress for homebuyers.
Santhosh Kumar, Vice Chairman of ANAROCK Group, reports, “We are expecting a 39% increase in deliveries from last year, with approximately 560,000 homes slated for delivery across India's seven leading cities in 2023. This marks an important milestone in the Indian residential real estate market as it surpasses the half-million annual completions mark. A remarkable jump from a mere 200,000 units in 2017 to an expected 2.8 times that number in 2023."
Leading the expected completions is the NCR, with roughly 170,000 units or 30% of the total deliveries anticipated in 2023, a significant 97% increase from the previous year. The Mumbai Metropolitan Region (MMR) comes in second, accounting for a 24% share, while Hyderabad's share stands at 4% but represents a tremendous 104% increase over 2022.
Several factors are driving developers to meet their project completion targets:
Despite this buoyant forecast, potential hurdles remain, including global economic uncertainties and rampant inflation, which could lead to significant cost increases. However, given the remarkable resilience shown by India's leading real estate developers in the past few years, the prospect of achieving this new project completion record remains promising.
In conclusion, the year 2023 marks a potential turning point for the Indian residential real estate sector. If these predictions hold true, it will reflect the industry's robust growth and resilience, setting a new benchmark in project completions and making a significant contribution to the Indian economy.
This story was first published by ET Realty
Advertisement
Facebook
Whatsapp
