India’s housing sector is currently experiencing a significant boom, which is possibly the largest in the past 15 years. This growth is being driven by several factors, including affordability and a desire among customers to own their own homes. Vipul Roongta, CEO of HDFC Capital Advisors, has noted that the residential real estate segment has bounced back strongly after facing difficulties due to the Real Estate Regulation and Development Act (RERA) and demonetisation. He believes that this is an ideal time to develop housing projects in the affordable and mid-income categories.
Roongta has also stated that the demand for housing is being driven by both aspiration and affordability, as well as a mismatch between supply and demand. The demand is mainly focused on affordable and mid-income housing in the country. Despite an increase in mortgage rates over the past year, the demand for housing remains strong. HDFC Capital Advisors has launched a $3.2 billion real estate fund for affordable housing, with 85% of the capital already committed.
Kuldip Narayan, Joint Secretary at the Union Ministry of Housing and Urban Affairs, has predicted that the size of the urban sector will double in the next 25 years. He believes that there will be a significant increase in requirements for facilities, residential spaces, commercial spaces, and urban infrastructure. Narayan has urged developers to adopt new construction technologies for faster completion of projects.
Raj Menda, Joint Chairman at FICCI Real Estate Committee and Corporate Chairman at RMZ Corp, has stated that after consecutive years of slowdown in the sector, last year witnessed unprecedented growth by reaching a new historical height in the commercial office segment. He added that the extraordinary demand for flex space from medium and large enterprises further propelled the sector’s growth.
Arun Chawla, Director General at FICCI, has stated that with an increase in urbanisation and household incomes, the demand for residential real estate has seen an unprecedented surge. As a result, India is now among the top 10 price-appreciating housing markets internationally. According to property consultant Anarock, housing sales hit an all-time high last year, with nearly 3.65 lakh units sold across seven major cities, beating the previous high of 2014.
