India's residential market will witness growth in the coming years on rising demand while housing prices are expected to appreciate on account of increased input costs, according to industry experts. Participating in a CII-Anarock webinar on Friday, real estate developers and consultants said they were surprised with strong recovery in housing sales both after the first and the second wave of COVID.
Overall housing market shrunk during the pandemic but large-branded developers have gained market shares, they added. The session was being moderated by Anarock Chairman Anuj Puri.
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Replying to a query on housing price outlook, Oberoi Realty Chairman and Managing Director Vikas Oberoi said price rise in housing market was "inevitable" as "there is clear cost escalation taking place". He also said the prices would be driven by rise in input costs and supply crunch.
According to him, developers, big or small and listed or unlisted, who have better execution track record would continue to do better. "I clearly see consolidation and growth," he said, adding that the consumption of real estate has started going up.
Asked whether his company would enter affordable housing projects, Oberoi said the government need to come up with a strong policy and initiatives to boost this segment. The affordable housing segment would require the government subsidies, if it has to take off in a big way, he added.
Bengaluru-based Sriram Properties MD M Murali also felt that housing prices could rise by up to 15 per cent in the next one year because of rising input costs. Brigade group CMD M R Jaishankar said the Bengaluru market performed well despite the pandemic as IT employees incomes' were largely unaffected while their expenditure fell.
He observed that millennials have started to purchase homes as they want to invest in solid assets such as real estate. Ambuja Neotia group Chairman Harsh Neotia said the housing market recovered faster than he imagined because of rising importance of having home ownership and additional demand from millennials.
Irfan A Kazi, Chief Investment Officer of SWAMIH Investment Fund, highlighted the funding done by the Rs 25,000 crore-SWAMIH fund and said the target is to complete 10,000 stalled homes every year. Vipul Roongta, MD and CEO of HDFC Capital Advisors Ltd, said the company has been funding affordable housing projects in a big way.
Ravi Agarwal, Co-founder and MD of Signature Global, talked about the success of its affordable housing projects in Gurugram, Haryana.