Luxury Living Soars: Unveiling the Phenomenal Growth in India’s Real Estate Sector in 2023
The year 2023 has been one of the most crucial years for the Indian economy, as the nation entered the ranks of the largest economies in the world. Emerging as the fastest-growing economy in the world, the country’s economic and political prowess has indeed led to 2023 being dubbed its global year. This feat was, however, attainable in no small part due to the country’s robust real estate sector.
The Indian real estate sector, worth $477 billion, contributes approximately 7.3% to the country’s GDP, a share that is poised to increase to 15.5% by 2047. Therefore, as we bid adieu to this year, it is crucial to conduct a comprehensive review of the real estate sector in 2023 to understand the trends that characterised this year. To say 2023 was a groundbreaking year for the Indian real estate sector would be an understatement, with the luxury segment leading the way.
In fact, in the first half of 2023 itself, the sale of luxury homes increased by 130% as compared to the same period in the previous year. According to industry studies, more than 60 high-value transactions (>Rs 40 crore) took place in 2023, as opposed to 13 in 2022. Not only that, sales of properties worth over 1 crore more than doubled this year vis-à-vis the previous year.
Some reasons for the popularity of luxury housing in India are:
Shifting Buyer Preferences
In recent years, there has been a shift of significant magnitude in the buying preferences of Indian homeowners. The pandemic in particular led to the revelation of these preferences, with many buyers wanting spacious homes with built-in work and study spaces owing to the pandemic restrictions. While these constraints have been lifted, the evolution when it comes to housing preferences has been permanent.
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