Are you curious about what the future holds for the real estate market in India? In 2023 with the emergence of co-living spaces and smart houses, as well as the rise in demand for affordable housing and environmentally friendly buildings, the Indian real estate market is rapidly evolving.
The government’s policies, economic growth, and technological advancements are all shaping the industry’s future in exciting ways. So, if you’re interested in knowing what the future of real estate market in India will look like in 2023, this article is for you.
In this article, we’ll explore the key trends and factors that are expected to shape the industry in the coming years and help you gain insights into what the future holds for the real estate market in India.
Role of government policies in the Future of Real estate market in India
One of the factors affecting the real estate business is government policy. These plans may also be referred to as legislation. The importance of legislation cannot be overstated, as it has a big impact on both property prices and demand.
The real estate market industry has had tremendous growth over the preceding 10–12 years against the backdrop of a rising economy and concurrent income increases. The required support was made possible in large part by government initiatives. Although these real estate market policies improved the general housing situation, they nevertheless included elements that may be seen as harmful to the financial viability of the real estate sector.
Aside from speculating, the government has been planning and executing big policy initiatives like “Housing for all” and the Pradhan Mantri Awas Yojana, as well as infrastructural mega-projects like new airports, metros, and motorways. Stating the obvious about how such factors promote both quantitative and qualitative growth in real estate market assets would be unnecessary.
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All aspects of daily life are being increasingly driven by technology, which is also playing an increasingly important role in the real estate industry. Nowadays, practically all real estate market activities, including drafting, finance, building, and traditional marketing, are influenced by digital marketing, technology, and sales targets. Property buyers and sellers can profit from a variety of modern technological advancements. These options are affordable and give both parties the chance to engage on a level that was previously impractical.
The field of augmented and virtual reality is another area where modern technology has significantly transformed the market. These tools allow buyers in the market to take virtual tours of properties before they are built, giving them a chance to see them in person. Potential buyers can therefore make better-informed decisions about buying a house since they have a more complete perception of the space and layout.
The metaverse, a fast-evolving digital space that is entering the mainstream, may have an impact on the future of commercial real estate. Futurism, commercial foresight, technical innovation, virtual architecture, and cutting-edge research all come together in the real estate market of the Metaverse.
The issue of climate change and its numerous repercussions have made it clear that standardizing, monitoring, and accounting for sustainability as a component of companies and their enterprises is necessary. In the near future, the entire Indian real estate market will surely get affected by this green building.
One of India’s largest investment possibilities over the next ten years will be in the built environment, which includes infrastructure and buildings. If properly addressed, the built environment may improve human quality of life and sustainable development, as well as cut emissions and address the climate issue.
Adopting an IGBC Green Building Rating is one of the most widely recognized methods for incorporating environmentally friendly, low-impact, and green measures into buildings and the built environment sector. According to stakeholders, green buildings are economically sensible since they use less energy and water, produce less waste, and have lower operating costs. In comparison to their conventional equivalents, they also frequently feature higher rental prices and occupancy rates.
The Potential of REITs in India
Despite difficulties on the international front, 2023 is likely to see continued strong growth in India. These are encouraging developments for a class of investments known as “REITs“. Real estate investment trusts, or REITs, are similar to funds that invest in real estate-related assets.
The world is currently experiencing an inflationary period. REITs typically do well during inflationary periods, in contrast to many other asset classes, as real estate prices and rents follow inflationary trends. Fortunately for Indian REITs, rising activity levels in the demand for commercial real estate, as noted above, coincide with inflationary periods.
REITs can be bought and sold on stock markets much like shares. Additionally, by giving exposure to a variety of underlying real estate assets in various markets, REITs provide an opportunity to diversify a portfolio. These are important advantages for an individual investor since the normal rental yields for residential properties in India, where the majority of individual investors invest, are pitifully low at 2-3%.
After the agricultural sector, the real estate industry in India is the second largest employer. Additionally, greater non-resident Indian (NRI) investment is anticipated in this industry over the long and short terms. NRIs are predicted to prefer Bengaluru above other cities for their real estate investments, which will be followed by Ahmedabad, Pune, Chennai, Goa, Delhi, and Dehradun.
Indian real estate developers have changed tactics and embraced new challenges in response to a consumer base that is becoming more aware and keeping in mind the impact of globalization. The transition from family-owned to professionally managed firms has been the most obvious change.
Real estate developers are hiring qualified experts in fields like project management, architecture, and engineering in order to fulfill the increased need for managing many projects across cities. They are also investing in centralized processes to source materials and organize labor. The central government hopes to construct 20 million affordable homes in urban areas across the nation by 2023, which will cause the residential sector to expand significantly.
Finally, we can say India’s real estate market sector is displaying signs of development and maturity. Many changes have been implemented over the last ten years to encourage openness, effectiveness, and innovation in the industry. With these initiatives and the projected building of better infrastructure in 2023, it is anticipated that India’s real estate market would continue to expand consistently and at a faster rate than previously.
Stakeholders in the real estate industry have every reason to believe that this industry will do well in the coming year, especially with the government stepping up to support and promote its expansion.
Are co-living spaces the future of the real estate market in India?
Co-living spaces are becoming increasingly popular in India, particularly among young professionals and students, and are expected to continue growing in popularity in 2023.
Will the demand for affordable housing continue to grow in India in 2023?
Yes, the demand for affordable housing is expected to continue growing in India in 2023 due to the government’s focus on affordable housing schemes and rising urbanization.
What challenges will the future of the real estate market in India face in 2023?
The real estate market in India is likely to face challenges such as regulatory hurdles, a lack of transparency, and the need for sustainable development.
How will changing demographics impact the future of the real estate market in India in 2023?
As India’s population continues to grow and urbanize, the real estate market is likely to see changes in demographics, such as a growing middle class, which will drive demand for housing.
Will real estate investment remain a lucrative option in India in 2023?
Despite the challenges, real estate investment is likely to remain a lucrative option in India in 2023, as the growing economy and rising urbanization will continue to drive demand for real estate. However, investors will need to be strategic in their investments and adapt to the changing market dynamics.