homereal estate NewsAs property market rebounds after 7 year time correction, DLF sees growth in these small cities
As property market rebounds after 7-year time correction, DLF sees growth in these small cities
Ashok Kumar Tyagi, Managing Director of DLF noted that there is traction in smaller geographies such as Indore and Lucknow.
The recent surge in property prices is partly a catch-up from seven stagnant years pre-COVID, where the industry was flat and prices didn't rise, according to Prashant Thakur, Regional Director and Head of Research at Anarock Group. As supply increases, Thakur expects prices to stabilise.
He noted that while affordable housing (under ₹40-45 lakhs) is still struggling, the real market activity is in the ₹80 lakhs to 1.5 crore range, predominantly in the top seven cities.
Anarock data suggests that in the last three years, home prices in Hyderabad grew around 10% annually. In Delhi, NCR, and Mumbai, the growth was more modest, between 5-8%.
According to Knight Frank data, residential sales grew 23% for nine months from January to September, across the top seven cities.
Property registrations in Mumbai hit an 11-year high in October, jumping over 30% in the festive period from October 15 to November 15 (between the festivals of Navratri and Bhai Dooj).
Ashok Kumar Tyagi, Managing Director of DLF noted that there is traction in smaller geographies such as Indore and Lucknow as well.
The Delhi-based real estate player is targeting sales of around ₹13,000 crore in FY24 with one major launch and three medium-sized launches slated in the second half of the year.
Thakur also pointed out that the inventory has now come down to around 17 months from a peak of 56 months. "We are also seeing a huge spike in delivery and completion of projects. So, by the end of 2023, the industry is expected to deliver 5.6 lakh units, which is 39% higher than last year," he said.
(Edited by : Shweta Mungre)
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