As per a recent study published by CREDAI/ Colliers the supply in the markets is robust as per current trends in the luxury segment especially in the tier one and 2 cities of India. However the rising costs of construction are making profits less healthy. This is a worrisome trend for alot the big players in the market working on volume business. If supply dilutes even by small nos, then overall accumulated profits see a certain hit.
The post COVID 19 era seems to be on a sustainable run as the sentiment towards home buying sees positive signs. Eco friendly homes are a preferred buy with rising costs witnessed in power consumption. With severe weather patterns seen across India, the energy consumption is putting demands on the grid. Whilst the demands are being met by the electricity boards, fears persist in the long run. Most households which once upon a time would see families of 4 managing with just one air conditioner through hot nights, are currently seeing a huge surge in consumption patterns and more than 2 units being operated throughout the night.
Residential purchases continue to see a surge and the demand doesnt appear to be drying up anytime soon. COVID 19 was a reminder to all that one needs to brace for flexible models like WFH and families maybe forced to stay at their premises for longer than envisaged. Hence many home buyers today are willing to shell out the extra bit for a more luxurious home than was the case even 5 years back. This is surely a good period for the real estate residential sector in India.