Thanks to various factors like implementation of RERA, speeding up of urbanisation, rising incomes, real estate is growing at rapid pace
The Indian real estate market is one of the fastest-growing sectors of the economy and is a key driver of economic growth in the country. The market has been growing rapidly over the past few years, driven by factors such as increasing urbanization, rising incomes, and a growing middle class.
The real estate market is diverse and comprises various segments such as residential, commercial, retail, and industrial properties. The market is highly fragmented, with a large number of small and medium-sized developers operating in different parts of the country. The real estate sector in India has witnessed significant regulatory reforms in recent years, including the introduction of the Real Estate (Regulation and Development) Act, of 2016 (RERA) and the Goods and Services Tax (GST). The current real estate trends are:
Demand for big homes: The pandemic has prompted many people to re-evaluate their living spaces, and the trend towards larger homes with more open spaces is expected to continue into 2023.
High demand for affordable housing: The Indian government's "Housing for All" initiative has led to the development of more affordable housing projects, particularly in tier-2 and tier-3 cities. These projects are aimed at providing housing to lower-income groups and are eligible for government subsidies. In 2023, we can expect to see more efforts to build affordable homes that meet the needs of low and middle-income buyers.
Demand in suburban and rural areas: As remote work becomes more common, many people are moving away from urban centres into suburban and rural areas since they offer more space, privacy, and affordability.
Focus on sustainability: There is growing awareness and interest in sustainable and green housing in India and this trend is expected to continue into 2023 with developers and homebuyers, seeking eco-friendly and energy-efficient homes. Developers are increasingly incorporating eco-friendly features into their projects.
Adoption of technology: The pandemic has accelerated the adoption of technology in many aspects of life, including real estate. In 2023, we can expect to see more smart homes, virtual tours, and digital transactions. With the advancements in technology, there is a growing trend of smart homes in India.
The trend of co-living spaces: With the rise of young professionals and students living away from home, co-living spaces have emerged as a popular housing option. These spaces provide affordable housing solutions with shared facilities such as kitchens and common areas.
Work from Home: With the Covid-19 pandemic, there has been a growing trend of working from home. This has led to an increased demand for homes with dedicated workspaces, high-speed internet connectivity, and better infrastructure.
RERA factor: With the implementation of The Real Estate (Regulation and Development) Act, 2016 (RERA), there has been increased transparency and accountability in the real estate sector. Despite these reforms, the Indian real estate market still faces challenges such as high inventory levels, sluggish demand, and liquidity issues. It is important for developers to understand the needs and preferences of their target audience. Offering flexible payment options like easy EMI can further lead to an influx in demand.
(The writer is the CEO and Founder of Legend Siroya Realtors)