Indian Real Estate Market: A Year of Mixed Outcomes and Future Prospects

In 2024, India's real estate market saw declines in residential sales for the first time since the pandemic, driven by rising housing prices and borrowing costs. The sector is hopeful for favorable economic policies in the upcoming budget to restore demand, particularly in affordable housing.

The Indian real estate market experienced a downturn in residential sales in 2024, a first since the pandemic era. The decline was primarily attributed to soaring housing prices and increased borrowing costs, which dampened buyer enthusiasm.

The sector had previously enjoyed strong growth, with housing sales rising significantly post-COVID. Anuj Puri, Chairman of Anarock, described the year as a 'mixed bag,' noting strong luxury sales but weak demand in the affordable segment.

The industry's future hinges on economic conditions and policies outlined in the upcoming Union Budget, with particular hopes pinned on tax reforms to boost sales in the affordable and mid-income housing categories.

(With inputs from agencies.)