Despite the global recession, India’s real estate industry is performing well, and this data comes at a time when other countries are attempting to stabilize their economies owing to inflation.Â
World Economic Effects on India
According to SBI Chairman Dinesh Khara, the impacts of global recession expected by the International Monetary Fund are less likely to be as severe in India as in other countries. Khara informed PTI about these real estate statistics during an interview on Friday on the sidelines of the International Monetary Fund and World Bank’s annual meeting. He also noted that India is doing well, with a 6.8% growth rate projected and inflation “well under control.” This balance can be attributed to the spending habits of Indian citizens on Diwali. A majority of businesses see a boost in their profits as Indians tend to buy more before the festive season. Whether it’s a local store selling diyas and lights or it’s an electronics store, it will see a positive sales trajectory. Â
China‘s intense zero-covid policy has resulted in prolonged lockdowns in the country’s major cities, ports, manufacturing hubs, and other countries worldwide. The real estate market’s dramatic decline has impacted the country’s finances. The property market in China, supported by the government, generates between 30-40 % of the country’s GDP and 30-40% of all bank loans.
Indian Real Estate Business
Although interest rates and total property costs are rising due to global economic issues, house sales in the top seven cities of India totaled INR 1,55,833 Cr in the first half of FY23. A 119% rise over the same time the previous year. In FY22, the total value of units sold was around INR 71,295 Cr. Approximately 1,73,155 residences were sold in the top 7 cities between April and September of 2022, up from approximately 87,375 sales during the same time one year before.
According to Anarock Group chairman Anuj Puri: “In value terms, MMR led the list with home sales of Rs 74,835 cr in H1 FY23, followed by NCR with Rs 24,374 cr. Overall house sales value in MMR increased by 110% annually to Rs 35,610 cr in H1 FY22, while in NCR, it increased by a staggering 174%.“
Puri reported that in the first half of fiscal year 22 (H1 FY22), the NCR had total house sales of INR 8,896 Cr. From April to September of this fiscal year, around 52,185 houses were sold in MMR, while sales in NCR were over 30,300 units in volume and value. The MMR housing market was the most successful, followed by NCR and Pune.Â
In light of the condition of worldwide trade today, a 6.8% growth rate is expected in India’s GDP, which is the fastest growth rate of any other country in the world.
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