The residential segment has witnessed the smartest and the fastest recovery with annual sales in 2022 expected to surpass 200,000 units, the highest in over a decade and near next to the 2010 sales of 216,762 units. Quarterly residential sales were over 50,000 units in each of the first three quarters of 2022.
As incomes get adversely impacted by inflationary pressures and global headwinds, the affordability synergy prevailing in the last six months has been challenged. While affordability is likely to be impacted, the slowing momentum looks to be temporary with the country’s focus on economic growth along with the likely easing of inflationary pressures.
The trend of launching plotted developments and independent floors is expected to grow with buyer preferences more toward such products. Developers also get the advantages of faster execution and quick inventory liquidation with such products.
Apart from the affordable and mid-segment, the traction is expected to take place in the premium segment as well backed by launches by established developers in prime locations. Moreover, there is rising demand for bigger homes with good amenities.
It is expected that the market share of established and credible developers will increase further with buyers preferring developers with a proven track record, robust financial strength, and execution capability. The sector is expected to witness consolidation at a faster clip with more joint ventures and development management contracts likely to be seen.
Top 3 advantages for home buyers
Developers have moved away from their own aspirational/dream projects to more relevant and customer-oriented ones.
Their strategies include adopting technology to enhance efficiency, focusing on products that are generating demand.
They are also incorporating the concept of sustainable and green buildings to consider the health and well-being aspects of the prospective buyers.
