The real estate market in India has witnessed a significant boom over the years, especially in the residential sector. A report by ANAROCK Group states that there has been a 36% surge in sales in FY23 when compared to the previous year. The reason behind this growth can be attributed to rapid urbanisation, increasing per capita income, and favourable government policies.

With the surging demand, developers are also encouraged to deliver exquisite properties at prime locations with seamless amenities that are also affordable to own. All these factors are further anticipated to sustain the housing momentum in the upcoming year. Apart from that, homebuyers also have a crucial role to play in growing the sector in 2024.

Affordability levels to remain stagnant - According to the Home Purchase Affordability Index by JLL, the affordability of the houses is projected to stay within the comfortable range in 2024. This will allow more people to own houses, and as a result, this will sustain the growth momentum of residential real estate over the next year. Moreover, the repo rate cut by the Reserve Bank of India (RBI) is expected to remain within the limit of 60–80 basis points, further ensuring that purchasing a house remains affordable for the buyers.

A safe haven for investment - Real estate is often regarded as a safe investment owing to its appreciation potential, diversification benefits, ability to hedge against inflation, and stable market. Today, global economic uncertainties are pushing investors towards safer and longer-term bets such as real estate. They have understood the significance of resilience and adaptation, which is why it is anticipated that more people will invest in residential properties in the coming years. A report by Concorde states that from 2023 to 2028, the real estate market in India is expected to grow at a CAGR of 9.2%.

Rapid urbanisation - According to the United Nations' World Urbanisation Prospects, India will have the biggest absolute rise in urban population of any country. The majority of the population is already moving to cities in search of a higher standard of living and better job prospects. This has enabled a plethora of projects to be created on great sites, giving everything a single spot. With an influx of people moving to cities, the demand for residential real estate developments is expected to surge, with a slew of projects set to begin, including affordable housing, mid-segment homes, and luxury apartments.

Changing preferences - The market has witnessed a shift in the preferences and aspirations of modern-day homeowners as they look for high-end residences. Homebuyers' major goal has shifted to an improved quality of life. When purchasing a house in an urban area, people want lifestyle amenities, seamless facilities, and easy access to everyday necessities. As a result of these numerous perks and amenities, gated communities and integrated townships are gaining favour among homeowners. The change to hybrid employment scenarios enabled modern-day people to choose residences in crucial locations while remaining self-sufficient.