Despite suppressed demand in 2020 & 2021, the sector rebounded in 2022 & 2023, with CBRE estimating a 5% growth in residential sales.

In 2023, the Indian real estate sector defied the RBI's tightened monetary policy and global economic tensions, reaching new heights after the setbacks of the initial COVID years. "High-interest regime remained a non-deterrent on sales," said real estate consulting firm CBRE in a note. Despite suppressed demand in 2020 and 2021, the sector rebounded in 2022 and 2023, with CBRE estimating a 5% growth in residential sales from January to September 2023. 

"Sustained momentum in demand led developers to launch over 220,000 new housing units during January-September 2023, marking a marginal growth of one per cent. While mid-end housing continues to pillar overall residential demand, the traction in the premium/luxury category housing segment in 2023 has been noticeable," CBRE noted.

As we look ahead to 2024, the positive sentiment in home-buying is expected to persist, driven by reputable developers exploring new cities. 

hroughout 2023, the real estate sector navigated rising input costs and borrowing expenses, adapting to remote work trends. Aditya Kushwaha, CEO of Axis Ecorp, notes a significant percentage of transactions in tier two and three cities, influenced by the demand for larger living spaces and appreciation potential.

"As these cities undergo developmental transformations, property values are anticipated to rise, offering investors promising returns," Kushwaha said. The RBI's repo rate stability at 6.5% provided stability for buyers and developers.