The Real Estate Boom Enabled the Nifty to Soar 77% In 2023

The real estate stocks astonish everyone with their splendid performance. They are making the Nifty Reality Index surge around 77% so far this year bringing the people associated with real estate in the state of euphoria. The appreciable rise in the Nifty Reality Index gives credit to strong demand and inflation in the prices of real estate property.

Out of 10 real estate stocks DLF Ltd, Oberoi Realty Limited, Godrej Properties LTD, Prestige Estates, Projects LTD, Sobha LTD, Phoenix Mills LTD, Brigade Enterprises LTD, and Mahindra Lifespace Developers LTD, a few got considerable recognition. The shares of DLF Ltd rose over 86% grabbing the second position after Prestige Estates and in addition to this, Sobha LTD, Oberoi Realty Limited, Phoenix Mills LTD, Godrej Properties LTD, and Macrotech Developers saw their shares rise between 50% and 80% YTD (Year-to-Date).

Experts claim that the recovery in property prices and the rising returns in yields are responsible for making investments in real estate properties attractive and keeping the demand to continue in the sector. The demand will remain strong for years to come as the positive industry structure and robust macroeconomic conditions fuel the growth of the sector. The first nine months of the year 2023 witnessed 7% higher sales as compared to the sales of the whole year 2022.

As per the data provided by the ANAROCK Property Consultant, the inventory of the top 7 cities was sold out in nine months, and the total sales were worth approximately Rs. 3,48,776 crores. During the span of nine months between January and September 2023, approximately 3.49 units were sold in the top 7 cities which is appreciable as compared to the 3.65 units sold in the entire year of 2022. This significant data shows the promising growth in the sector for years to come.

The comparison of the property sales in the entire year 2022 and that of the first nine months in 2023 speaks about the rising demand for premium luxury residential property. The statistics of the data of property sold show that the average property prices rose anywhere between 8 and 18 percent in the year 2023 in the top cities. This data makes an apple-to-apple comparison challenging for real estate consultants regarding annual sales value.

The powerful sales momentum signifies that the sum total value of the property sold this year will cross the Rs.4.5 lakh crore mark, which will be 38% higher than the Rs.3.27 lakh crore sales value of the year 2022. As the year 2023 passes, the real estate sector is going to witness an impressive surge where low-rise and mid-rise housing options in Gurgaon are taking center stage.

“The reflection of the demand and sales of property at the end of the year shows a year-on-year upswing, and showcases a strategic prowess in meeting the rising demand for luxurious yet affordable residences,” says Pradeep Agarwal, the Founder and Chairman of Signature Global Ltd. When he looks ahead, Agarwal believes that the way 2023 has set a positive trend in motion it will continue in 2024 as well, and the entire real estate industry is looking ahead with hope for exponential growth in the industry.

DLF has brought many low-rise and mid-rise properties to Gurgaon and redefined luxury living in the city. After the grand success of many low-rise and mid-rise projects in Gurgaon, the developer launched DLF Privana recently to meet the demands of the new generation. The data and statistics show that the interest of people is shifting to luxury property after affordable housing. The ultra-luxury amenities and the facilities are the key drivers for the shift in the choices of people.

DLF understood the taste of the home buyers and interpreted that they focused on quality living instead of seeing property as assets. Therefore, homebuyers now prefer low-rise and mid-rise floors instead of villas and independent houses.

About DLF Ltd

DLF is one of the celebrated real estate firms in the country holding a legacy of over 75 years. It takes pride in successfully delivering exemplary real estate projects across India. Founded in 1946, by Raghuvendra Singh the company has delivered a multitude of marvelous pieces and contributed to the development of many cities.