Page 54 - Construction Vision Dec-Jan 2024 Issue

There was also a 24% increase in new compared to the same period a year ago, has been spurred by increases in
residential projects being launched, data he said. incomes and the migration of workers
from the consultancy showed. from rural areas.
Underpinning demand has been salary
"The home sales are driven by first-time hikes for workers in big cities. Average The government is also trying to boost
buyers, and nearly 80% of the houses hikes for sectors such as e-commerce, the availability of affordable housing by
have been bought by end users," said healthcare, retail and logistics have providing subsidies, which is encouraging
Prashant Thakur, head of research at remained above 10% for a second construction in India's smaller towns and
Anarock, adding that there was also straight year, according to EY estimates. cities.
strong demand from existing home
owners to move to more spacious Home prices in India are expected to rise Shares in property companies have
apartments. faster than consumer inflation next year, naturally surged.
according to a Reuters poll, with property
In Mumbai, for example, demand has analysts saying growth will be driven by The Nifty realty index is up some 67% for
been strong despite an increase in higher earners snapping up newly built the year to date compared with a 12%
interest rates of about two percentage luxury residences in cities. gain for the blue-chip Nifty 50 index.
points, according to Jayesh Rathod,
director of Mumbai-based Guardian Real Housing demand has also picked up Notable gainers include Prestige Estates
Estate Advisory. significantly in smaller cities in the Projects which has jumped some 120%,
southern states of Tamil Nadu, Karnataka DLF which has climbed 67% and Godrej
His company has sold over 5,500 flats in and Prime Minister Narendra Modi's Properties which is up 52%.
Mumbai and on its outskirts in Thane so home state of Gujarat, according to
far this year, a jump of more than 50% construction companies who say demand

CONSTRUCTION VISION 52 DECEMBER-JANUARY 2024