Real Estate Sector’s Focus on Security: Key Quotes as 2024 Ends

Mr. Peush Jain, Managing Director – Commercial Leasing and Advisory, Anarock

Despite the changing economic environment and the rise of hybrid work, the office market demonstrated remarkable resilience this year. We witnessed a clear ‘flight to quality,’ with companies prioritizing Grade A assets with best-in-class amenities and sustainability features. In fact, our data indicates that gross absorption of Grade A office space increased 78 million sq.ft, driven by companies seeking to enhance employee well-being and attract top talent in a competitive market.

Mr. Samir Jasuja, Founder & CEO, PropEquity

The residential real estate market saw some decline in demand and supply in 2024 as compared to record high of 2023 but the supply to absorption ratio remains the same, implying that the growth is strong and healthy. Home prices have also appreciated substantially over the past three years. Luxury housing continued its dominance which is reflected in the fact that the market size of apartments, priced over Rs 5 cr., has gone up from $4 billion to $16 billion in the last 4 years witnessing 4x growth.

Property in tier 2 markets did see some resurgence in demand. The growing avenues for employment and robust infrastructure have elicited a lot of interest from developers and financial institutions which is evident from the price rise witnessed in top 30 tier 2 cities.

Mr. Garvit Tiwari, Director & Co-Founder, Gurugram-based property consulting firm InfraMantra

The year 2024 has been a remarkable year for real estate sector, primarily luxury housing with homes priced upwards of Rs 3 crore becoming the new normal in metro cities. The rise in demand on account of rising aspiration & wealth and overall economic prosperity coupled with rise in cost of land and construction, led to exponential rise in prices over the last couple of years. The heightened interest from NRIs (the rising remittances over the past years and weak rupee) have also contributed to demand for luxury homes. The infrastructure development across cities in enhancing the connectivity and improving the standard of living have positively impacted the real estate sector.

However, with the economy showing some signs of a slowdown, with falling GDP and rise in inflation, the pause in exuberance from homebuyers and investors was felt through the year. This pause may also be on account of low/minimal activity during April-September period owing to General Elections and monsoon. As a result, home sales seem to have moderated from the 2023 peak but the health of the real estate sector continues to be robust.

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