The real estate growth rate in India has been booming in recent times. In 2023, the real estate sector achieved a record growth that surpassed all projections.
A staggering surge in the sales of luxury units was highlighted by CBRE South Asia Pvt Ltd.’s India Market Monitor Q3 2023 Report. A 151% YoY sales hike in luxury residential properties during Q1 2023 has been recorded, which only further reinforces the demand for luxury real estate.
This growth has been a stark contrast to the real estate growth in India in the last 10 years, which has averaged only 5.0%.
Government Initiatives to Tackle Challenges
This post-pandemic real estate boom in India has helped the property market withstand the high interest rates after the inflation pressures resulting from the Russia-Ukraine conflict.
Despite the challenges, the government has been proactive in implementing measures to boost the Indian real estate market. Various initiatives like affordable housing schemes, the Smart Cities Mission and the Real Estate Authority (RERA) were launched to foster transparency, accountability and sustainable growth in the real estate sector.
Role of Tech in the Market
The future of the Indian real estate market has been undergoing digital transformation, with technology playing a pivotal role in the process. From virtual property viewings and augmented reality experiences to blockchain transactions and big data analytics, spaces like PropTech are changing the ways of investment, purchasing and selling of real estate.
Real Estate Trends in India
The preferences of most buyers in the housing market in India are evolving. With sustainability and eco-friendly living gaining attention, there is also a growing demand for smart homes and automation.
These real estate trends, alongside a shift towards suburban living, are all driven by changing work dynamics and lifestyle choices. This shift has dramatically evolved the Indian residential real estate market to suit the preferences of potential buyers.
Furthermore, the future of Indian real estate is said to experience a rise in the demand for co-living and co-working spaces as a result of the changing work and lifestyle dynamics. Real Estate Investment Trusts (REITs) and the flourishing rental market are trends shaping the future of the Indian real estate market.
The integration of e-commerce in the real estate market is another trend that is bound to develop more in the future. With online retail and real estate creating new opportunities, warehousing and logistics hubs are in high demand, thanks to the surge in online shopping.
Moreover, e-commerce platforms with property transactions have been simplifying the buying and selling process, offering a convenient service to consumers.
Environmental and Regulatory Compliance
Sustainable and green buildings are no longer just a part of real estate trends. As environmental consciousness grows, both aspiring buyers and sellers are prioritising eco-friendly structures.
Green certifications and ratings offered by organisations like the Indian Green Building Council (IGBC) and Leadership in Energy and Environmental Design (LEED) are now used to validate a construction project’s commitment to sustainability and enhance its market appeal.
Government incentives such as tax breaks and approvals have been further encouraging developers to adopt green building practices.
Urbanisation and Investment Prospects
The rise in Tier 2 and Tier 3 cities is contributing to the real estate boom in India. With increasing urbanisation, job opportunities and investors recognising potential property values in these cities, they have turned into attractive investment destinations.
Moreover, as the country’s economy continues to develop, the potentiality of long-term capital appreciation and opportunities for diversification of investment portfolios increases. Apart from new urbanisation sectors, investors have been investing in commercial spaces, driving demand for commercial real estate.
However, acknowledging the risks related to investment in the Indian real estate market is crucial, as potential market risks are always prevalent in investments. Market volatility, economic uncertainties and fluctuations in interest rates can pose significant challenges and navigating these risks through knowledge of the market is imperative.
In Conclusion
The future of the Indian real estate market is uncertain but bound to have a transformative impact on the country. The staggering surge in luxury unit sales that went beyond expectations is only an example of the increasing demand for upscale properties.
Factors like sustainability and green homes are no longer just mere trends, but important initiatives that are also supported by the Indian government through its organisations like IGBC and LEED.
One such group providing the best of the market’s demand for luxury is Piramal Realty. A group has been a step ahead of the industry, setting the benchmark for all real estate trends in India. Explore the finest examples of Indian luxury real estate, today.
Disclaimer- This article is based on the information publicly available for general use as well as reference links mentioned herein. We do not claim any responsibility regarding the genuineness of the same. The information provided herein does not, and is not intended to, constitute legal advice; instead, it is for general informational purposes only. We expressly disclaim /disown any liability, which may arise due to any decision taken by any person/s basis the article hereof. Readers should obtain separate advice with respect to any particular information provided herein.
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