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Speaking about the sector’s outlook, Chhaochharia said the property cycle in India is backed by strong fundamentals, including favourable metrics such as affordability, inventory-to-sales ratios, and structural demand trends.
Despite the recent rise in property prices, he argued that the current cycle is “different” from past trends.
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On affordability and inventory levels, he noted, “The Indian property cycle is far away from reaching its peak on all the usual metrics.” These metrics suggest that the sector remains under-penetrated and offers a runway for further growth.
Chhaochharia highlighted that while the premium housing segment is driving momentum, the affordable housing segment has lagged due to supply constraints. However, mid-segment housing is showing robust demand.
UBS’s analysis positions Indian real estate as a structural growth story, not just a cyclical recovery. “This is not just a six-month call,” Chhaochharia stated. “It’s one of the structural calls our analysis is making, and we as a house are backing that.”
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He also attributed the sector’s revival to increasing wealth creation in the country, which is driving interest in larger and better homes. For instance, the faster pace of high-value home sales reflects this trend.
“The biggest data point is the inventory to sales or the supply coming in. It’s nowhere near any cyclical peaks,” he said.
