Indian real estate has been resilient throughout 2023. The current year will give upward mobility to India’s housing market. The government’s supportive initiative and RBI’s decision to stabilize interest rates have enabled numerous homebuyers to accomplish their dream of home ownership. The Indian economy was the fastest-growing economy worldwide in 2023. Moreover, RBI has predicted a 7% growth in India’s GDP this year. The growth in GDP will ultimately impact the disposable income of people. Technology will also be pivotal in accelerating the housing market’s momentum. Developers have realized the prominence of Prop Tech adaptations, offering innovative and efficient solutions to traditional challenges. Eco-friendly and smart homes are also gaining prominence among modern homebuyers. As people are becoming more environmentally conscious, developers are integrating sustainability practices while developing their projects. Homebuyers are currently preferring energy-efficient homes with top-notch technologies that will enhance their living experience.
The residential sector in 2024 will driven by end-user demand in India across various segments. People are inclined towards an upgraded lifestyle and are willing to pay more for premium homes. The overall sales of the luxury segment went up to 2.5 lakhs in the last year and is assumed to increase to 3 lakhs units this year. Moreover, supportive government policies, stable RBI rates, and increased disposable income are leading to robust demand in the housing market. The government’s efforts to encourage and support RERA amendments are enhancing accountability and transparency in the sector. Customers can easily access in-depth details and updates of residential projects through RERA. This instates their faith in the sector and also assures the protection of homebuyers against fraud and unnecessary delays. All these aspects will enable numerous people, irrespective of their background, to become homeowners.
Infrastructure and real estate go hand in hand while augmenting growth. Ambitious infrastructural developments across major cities in India will stimulate the growth of real estate. Mumbai Metropolitan Region, a key market in Indian real estate, is expected to witness 5.5% year-on-year growth owing to consistent demand backed by positive economic indicators and infrastructural upheaval. Panvel, a prominent micro-market in the Mumbai Metropolitan Region, is experiencing a huge price appreciation since the announcement of Navi Mumbai International Airport, Mumbai Trans Harbour Link, Navi Mumbai Metro, etc. With MTHL getting operationalised for the commuters, there will be a remarkable increase in housing demand in Panvel and adjoining regions. Such infrastructural developments will prove the backbone of augmenting the overall economy, including real estate. Housing prices that started increasing last year will continue to move in an upward traction in 2024 and further.
Tier 2 and 3 cities are also attracting investors in terms of the huge scope of development that they offer. The changing sentiments of homebuyers are also driving the demand for these cities. People’s preference to own a home in a micro-market rather than staying on rent in a metro city is getting underscored. Homebuyers have understood the importance of owning a best-suited home that suits their budget as well as offers an aspirational lifestyle. Existing homeowners are opting for bigger homes in a comparatively sustainable location. This sentiment will keep growing in the coming time.
As per Industry experts and research reports, the real estate sector is poised to grow optimistically. The sustained economic growth, homebuyers’ positive attitude, and ongoing infra developments will lead to a 15-year high remarkable growth in the real estate industry.
