India's GDP may touch 8% by end of 2024, if real estate growth continues: Niranjan Hiranandani

Budget 2024: In next 24 months, we will see a sea change for real estate. Further, in upcoming budget 2024, we think government will have to look at affordable housing. It might be incentives or interest rates for home loan that we expect to go down," Niranjan Hiranandani of Hiranandani Group said.

In 2023, the Indian real estate market had record all-time high sales. Niranjan Hiranandani, Managing Director (MD) of Hiranandani Group, predicts that if the growth of the Indian real estate market continues in 2024, India's GDP will touch 8 percent.

Hiranandani stated that real estate will grow faster than other sectors in India. The multiplier effect of real estate will take place in the rest of the economy, increasing GDP. Hiranandani also mentioned that the finance sector, BFSI, and IT sector in India are doing well despite the international lull. Both mid-income and luxury residential sectors have done well, and a lot of infrastructure is being built around Mumbai.

In the next 24 months, a sea change for real estate is expected with the opening of the MTHL link connecting Mumbai and Navi Mumbai by Prime Minister Narendra Modi. The MMR will also see a 300-kilometer Metro network. Hiranandani added that the upcoming budget for 2024 should focus on affordable housing, with possible incentives or interest rates for home loans expected to decrease.

Real estate upcycle in 3rd year:

"The upcycle of real estate has started and it is the third year as post Covid-19 demand is good. We are producing and launching more and it is being consumed. We are in Mumbai, South India expanding everywhere. For us, in Mumbai we have got great response," said Irfan Razack Managing Director of Prestige Group while speaking to CNBC-TV18.

Also read: Year Ender 2023: Luxury property sales rise in Mumbai, Rs 3-7 crore sweet spot for homebuyers

"Further, infra boost will help affordable housing as it is a need of the day. Volumes will come from mid-income housing. Luxury will do well but it is niche, real volumes will come from mid-income housing," Razack added.

Growth outlook for 2024:

According to a report by JLL India, the Indian real estate sector is poised for significant growth in the coming years, with projections of a 10 to 15 percent increase. In 2023, the residential segment saw a surge in sales, with a remarkable 26 percent increase compared to the previous year. This was an unprecedented high since 2010, and JLL's Chief Economist and Head of Research, Samantak Das, highlighted that the high in 2023 was even more impressive than in 2010.

In particular, tech cities such as Bengaluru have demonstrated exceptional performance, with a higher number of units sold than in the Mumbai real estate market. Looking ahead, industry experts are anticipating a rate cut for interest on home loans in 2024, which is expected to further fuel growth in the real estate sector.