Real-Estate Pent-Up Demand Surge May See Headwinds In 2023 – BQ Prime

A surge in post-pandemic pent-up demand helped India’s property market overcome risks from rising interest rates this year but the dream run might face hurdles from global headwinds in 2023.

Any moderation in growth will mark a premature end to what industry watchers believe to be the start of a ‘long-term upcycle’ in the Indian real estate sector.

The optimism emanates from record housing sales this year, surpassing the pre-Covid 2019 numbers and the previous high of 2014.

“2022 proved to be a successful year for the residential real-estate market as momentum of sales and consolidation of players continued,” property consultant Anarock’s Chairman Anuj Puri said.

Fundamentally, the market is much more mature and stable than it was prior to the pandemic, he told PTI.

Puri added that he is “hoping that 2023 calendar year is as vibrant as 2022 for the residential market, provided the headwinds of possible global recession, high inflation and interest rates and Covid resurgence doesn’t become a spoilsport.”

Realtors’ apex body Credai’s President Harsh Vardhan Patodia said, he expects “strong and positive momentum to prevail in the Indian real estate market.”

The International Monetary Fund has projected the global economy to shrink by 0.2% in 2023. This would mean investment flows to developing economies from rich nations will slow. Many emerging markets and low-income countries are already facing pressures from a depreciating currency, capital outflows and inflation.

With the inflation battle yet to be won, economists expect the Reserve Bank of India to raise interest rates further at least in the first half of next year.

According to Anarock, 2022 housing sales in primary markets (fresh sales) across seven major cities stood at nearly 3.65 lakh units, an all-time high, up 54% from 2,36,500 units last year.

Sales of residential properties stood at 2,61,360 units in 2019 (pre-Covid) and 3,42,980 units in 2014 across

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