Sanjeev Prasad, Managing Director and Co-Head, Kotak Institutional Equities, is optimistic about the prospects for the real estate sector. “…There’s a lot of reserve demand, affordability is great at the moment, and prices are just starting to rise. Move up.”
In a discussion with CNBC-TV18, Prasad emphasized that real estate cycles tend to be long-term, often lasting more than a few years. He pointed out that the Indian real estate market has been stagnant from 2012 to 2021, with prices flat in most regions and real price declines in real terms. He believes this stagnation has led to significant pent-up demand.
Prasad observed that there has been a rise in prices in certain markets over the past 12-18 months, which may prompt potential buyers who were previously waiting for prices to start moving.
Average residential real estate prices in the top seven cities rose a total of 11% year-on-year in Q3 2023. Hyderabad topped the list with an annual growth rate of 18%, followed closely by Bengaluru with an increase of 14%.
During this year’s festive period from Navratri to Bhai Dooj, property registrations in Mumbai alone rose 30% year-on-year to 12,600, according to Knight Frank.
“The next 25 years will see dramatic changes in the Indian economy and real estate sector,” Shishir Baijal, chairman and managing director of Knight Frank India, said in an interview with CNBC-TV18 in August. Told.
Private equity investment in real estate in India is also expected to grow by 5.3% to $5.6 billion in 2023.
(Editor: Shweta Mangre)
First Published: November 20, 2023 3:18 PM IST