A Milestone Year For Indore Residential Real Estate
Real Estate has always been a favored investment avenue for people, but its demand has hit a new high in the year 2022, with constant interest seen from end users coupled with lower home loan rates and steadily growing home-ownership sentiments. According to the latest report shared by Real Estate experts Sunil Agrawal and Associates ( SAA ), the total residential real estate supply in 2022 was 1.26 Mn Sqft, and absorption was 0.18 Mn Sqft, which is a significant absorption rate to be seen in the residential sector. Despite challenges such as escalating construction costs, inflationary pressures, and RBI interest rate hikes, the sector demonstrated remarkable resilience and dynamism, with interesting trends emerging throughout the year.
Analyzing the recent trend in new housing prices, there has been a staggering 44% surge in prices during Q4 2022 in comparison to the same period in 2021. Vipul Agrawal, the Managing Director of SAA, said, “One significant trend that emerged during the year was the resilience of the residential segment in the face of increasing housing prices. Housing prices rose by 44% in Q4 2022 vis-à-vis Q4 2021, which was inevitable after a period of relative stagnation for 2-3 years. Despite these price hikes, increased home loan rates did not seem to impact residential sales 2022.”
He added, “Affordable housing witnessed the highest drop in the available inventory in Q4 2022 vis-à-vis Q4 2021 among all budget segments.” Notwithstanding, the purview of luxury real estate (comprising INR 80 Lakh to INR 2.5 Cr properties) experienced a rise in the volume of stock available during the aforementioned period.
The report presented by SAA also pointed out that micro markets of Indore, like Sanwer Road gains the maximum attention with 28% absorption in 2022-2023. Rau and Mangliya are also emerging as strong Micro markets in Indore due to their affordability and connectivity to the Main City. Homebuyers are seen as more interested in investing in these locations as the upcoming Rau-Dewas bypass is all set to connect Indore with the imminent Delhi-Mumbai Industrial Corridor, further enhancing its potential as a desirable investment destination.
In conclusion, the residential real estate sector in Indore is abuzz right now, and strong sales and continued momentum is expected to be seen in 2023 also. We will continue to see this trend due to evolving consumer preferences, changes in lifestyles, and demographic shifts. And with the residential market showing such impressive growth, Indore has undoubtedly become a market to watch out for in the years to come.
