Navigating the Indian Real Estate Market: Current Trends and Insights
- September 17, 2024
- By: Yukti Kasera
- INFLUENCERS
If there’s anything apart from gold that the Indians are looking forward to investment- it’s real estate! India’s real estate market has seen a lot of transitions and it's still evident. The prominent investors, and buyers are all interested to be a part of this shift and transition, which is backed by both population growth and economic growth. Industry experts have also taken notice of this development. This rapid growth is surely driven by a number of factors like income category, urbanization and the growth of education in the country.
Overview of the Indian Real Estate Market in 2024
With the increasing opportunities, the residential real estate market in India is progressing in terms of making new regulations, setting economic standards, and societal aspirations. For financial year 2023, the residential real estate market in India saw a major change with 48% annual growth, and setting high standards by hitting a record high of Rs. 3.47 lakh crores.
A diversification of capital depth is observed in Asian markets, including the real estate market value in India, with real estate emerging as a preferred sector for higher allocations. Building Material Reporter believes in the thorough research of the industry, and yes, real estate is one such segment which is ruling the market. According to our survey, real estate can be considered as the most thoughtful investment because our economy is one of the fastest-growing in the world.
As our company believes in catering to the different cities of India, our experience suggests that this increase is also due to private consumption and capital formation. Also, the categories are innumerable. With enhanced building construction opportunities and rapidly growing urbanization, there are areas like- data centers, commercial buildings, logistic centers, and residential properties, where the investors are investing.
Growth of the Real Estate Market in India Over the Years
As per many sources it is assumed that the real estate market will rise significantly in 2024 while being there within affordable bounds. With the robust demand and growing acceptance, India's residential real estate sector is expecting up to 300,000 units of sales. This is basically due to the changing consumer preferences and technological developments.
Talking about the metro cities, the real estate market was always subjugated by the urbanization ideologies. Following the current trends of real estate, it is observed that the acceptance will boom in the cities like Chennai, Delhi NCR, and Mumbai.
Smart Design Conclave & Awards, an initiative by Building Material Reporter, works with the motto of acknowledging the design plethora in the Tier 2 & Tier 3 cities. Talking about the real estate development in these cities, the team was truly surprised to see the enthusiasm amongst the new investors as according to them these cities are going to roar in the upcoming years. Karnal, Hisar, Guwahati, Ranchi, Bhubaneswar, Udaipur, Lucknow, Dehradun and many more cities are coming up with new budding opportunities, provoking the people to invest here too.
Moreover, the anticipated repo rate cut is going to maintain home prices within an affordable range for the potential buyers. The commercial sector is also taking a leap as the businesses are rapidly growing in the nation.
Rising Trends and Shifts in Indian Real Estate
With the increasing demand for the investment in real estate, here are a few rising trends and shifts in Indian estate segment which you must know:
Growth in Residential Market
Residential real estate is taking a crucial turn in terms of investment. With increasing green buildings and potential urbanization, the demand for the same is increasing. But for a sustainable growth in the residential market, experts from the industry are stressing on a lot of factors like government schemes, affordable housing schemes and bank incentives that offer lower interest rates. The residential market can show a growth trajectory that is inclusive and egalitarian. This shift is also due to the fact that people are nowadays more dependent on rental income.
The Financing Aspect
In terms of financing specifically, forecasts for 2024 suggest that house loan rates will probably stay unchanged and have little effect on demand for India’s real estate market in the residential area. Rather, affordability and the prospective buyers' income outlook are anticipated to be the key determinants of residential sales in 2024. There is a sudden shift in the prices of real estate sector specially post covid.
However there are positive things ahead! As a whole, the real estate market value in India will definitely improve in 2024, keeping in mind the various combinations of market dynamics, government standards, and investors' budgets. Keeping in view the affordability, long-term growth, and strategic financial measures, the real estate sector will play a critical role in building and contributing to India's economic landscape, creating immense new opportunities for both homebuyers and investors.
The Strong Player: Tier 2 Cities
In an attempt to feel more stable after the pandemic, many people reevaluated their living situations and looked for safe houses in their hometowns. Catering to the real estate industry analysis in India, Tier 2 cities are now known as developing real estate hotspots as a result. The real estate market in these cities is changing significantly as a result of the noticeable increase in investment activity.
With a booming housing market driving infrastructure expansion, Tier 2 cities offer a wide range of residential and commercial opportunities. The government's various initiatives to promote smart cities or the emerging new towns, is also helping the real estate sector to grow rapidly. Designers and Architects are coming up with new designs, specially catering to these cities.
Love for Luxury Housing
The luxury real estate market in India has shifted its focus to premium housing. Such exclusive residential projects, complete with top-tier amenities, entice discerning buyers seeking unparalleled living experiences. The landscape of luxury real estate has changed dramatically, driven by shifting consumer preferences influenced by demographics, increased technological integration, and rising income levels.
Buildings are designed nowadays, in such a way that it exudes luxury. The current generation are mostly drawn towards luxury homes as their incomes rise, their urban lifestyles change, and their wealth grows. Furthermore, the potentiality for a high return on investment on properties and significant rental income from them has also increased the demand for luxury properties. This shift revolves around the fact that people want a luxurious living where they can easily stay indoors.
Advent of Technology
Technology is ruling everywhere. Augmented Reality (AR), Virtual Reality (VR) etc, are changing the real estate scenarios. AI-integrated personal assistants, advanced security, and providing energy-efficient solutions only for the residents' preferences- these are now some standard features in the high-end real estate properties. This perfect blend of consumer aspirations and technological innovation is helping to make the real estate industry a big market into the realm of luxury on a global platform.
Policy Reforms and Regulations in Indian Real Estate
With the enhanced housing demands, the government has started putting more attention on affordable housing, and developers have adjusted and come up with more strategies to propagate this segment. But first let’s check out what is affordable housing? Affordable housing is a dream come true for almost all the middle income home buyers who are looking forward to new investment opportunities and which are priced at a substantial level.
Government schemes such as the Pradhan Mantri Awas Yojana and the Rajiv Awas Yojana, have motivated the potential developers and buyers to invest in these projects. These schemes promote inclusivity and accessibility in the real estate industry. With a large portion of our population having budgeted purchasing power, meeting the 40 million urban housing demands must also be addressed.
The impact of RERA is also significant. It has persuaded the real estate market by resurrecting the sector with which the developers are answerable to the property buyers. Some milestones from RERA are: It is very important to register all the projects under the act where the land’s area is more than 500 sq.
By lowering the frauds, inconsistencies, and delays in projects, with RERA there is an increased consumer confidence which has led to enhanced investment in the industry. Another one is REIT- Real Estate Investment Trusts. This manages the fund revenue-generating real estate properties by gaining capital from investors for investment in commercial real estate ventures, encouraging indirect investment of power.
As the emphasis on sustainability is increasing, the real estate sector is also not behind in this. Numerous environmental laws and initiatives have been initiated to encourage green building materials and sustainable construction methods. Green building certifications like Green Rating for Integrated Habitat Assessment (GRIHA) and Leadership in Energy and Environmental Design (LEED) are also there which embarks on the integrity of the green buildings. Modern technology is now the pioneer in construction methods and designing buildings that reduces energy costs is the ongoing talk of the town.
Opportunities and Market Outlook in Indian Real Estate
Opportunities in the real estate market are abundant. Depending on their unique needs, preferences, and financial goals, people can choose from a wide range of options in the Indian real estate market.
Real estate investments are becoming more and more profitable as a result of accommodating laws and regulations. For the best ROI, one should constantly keep a check on the desired cities and locations as there are a lot of developing real estate markets in these areas.
According to Savills India, real estate demand for the data centers is likely to surge by 15-18 million sq. ft. by 2025. With half the year done, the remaining year is going to drive the growth with urbanization, rental market, and appreciation in rates.
The Way Forward for the Indian Real Estate Sector
The economy of our nation attracts a major chunk of investment, with real estate being the major area of concern. This trend will remain on an upward trajectory the stability in the country along with our commendable performance in the world economy.
Building Material Reporter believes in serving the best! Stay tuned with us for more ideas and news related to construction technology, green buildings, home decor, interior design, new projects, architecture and innovative materials in the industry. Follow us for the latest news and stay updated.
Frequently Asked Questions (FAQs)
What is the future of the real estate industry in India?
The future of the real estate industry in India is positive and impactful. With a lot of governing factors, the segment is going to enhance and the investment will readily increase. Growing population, convincing government schemes, green buildings, RERA support, and advent of modern technology are all the leading factors contributing to the positivity.
What is the current state of the real estate market in India?
The current scenario of real estate is seeing a major transformation. Post covid the demand for the investment has increased rapidly. Past owners are getting significant response and there are new buyers in the market. This is also due to changing consumer preferences, sustainable construction and technological advancements.
