Indian Real Estate 2024: Trends Reshaping the Industry
The last five years have been transformative for the global real estate industry. In the midst of the global pandemic, socio-political upheaval, international and civil wars, and the ever-feared economic recession, the real estate industry is at an interesting crossroads today.
While the pandemic has ushered in a demand for spacious homes with world-class amenities, driven by the shift to remote or hybrid work modes, it has also simultaneously driven up demand for the premium and luxury residential sectors at an albeit affordable price. Nowhere are these trends more apparent than in the Indian real estate market.
As the rest of the world is dealing with headwinds on every frontier, our country is going through a period of economic nirvana, wherein the per capita income of the working class is on the rise, hand in hand with a steadily growing GDP. This has led to a gradual shift in consumer behaviour in the Indian real estate market. In this blog, we will endeavour to briefly study some trends in the real estate industry that we will likely be witnessing in 2024.
Shifting Consumer Investment Preferences:
The shift to hybrid work modes has, perhaps accelerated by the COVID-19 pandemic, transformed the real estate industry terrain. The housing insecurity many had to contend with during the pandemic has led to people being more inclined than ever to invest in residential property over renting.
Moreover, another interesting trend that the industry is witnessing is the rising demand for modern, state-of-the-art amenities in houses. Today’s rising middle class, with their increasing exposure to global standards of luxe living and escalating incomes, has a tendency to desire homes that reflect their aspirations for an elevated lifestyle.
Therefore, the demand for luxury residential projects has steadily been on the rise, with sales rising by 24%, according to a leading real estate consultancy. The demand for spacious residential properties with designated work space has also been on an upward trajectory in the past year, as the definition of homes has evolved into so much more than the traditional room with four walls.
Opportune Economic Climate
The Indian economic buoyancy is another fact that is predicted to positively contribute to investor sentiments in the housing market. Dubbed the ‘bright star’ amidst the global phenomenon of economic decline, the Indian economy has indeed grown steadily from strength to strength in the last decade. This has culminated in increased foreign investments, attractive employment opportunities, strengthened job security, rising per capita and disposable income, and making the middle class more secure than ever.
Additionally, macroeconomic factors such as stable home loan interest rates and low inflation have been the defining features of the last couple of years, resulting in increasing interest in home ownership. As witnessed in 2023, this interest is likely to be characterised by the country’s upwardly mobile middle class’s rising aspirations for an affluent lifestyle.
Movement to Tier 2 and Tier 3 Cities
Closely tied in with the growing penchant of the Indian populace for a high lifestyle and the rising real estate prices in Tier 1 cities would be a move by aspiring homeowners to Tier 2 and Tier 3 cities in search of homes that would provide them with a luxurious experience at a relatively affordable price. This shift would also be motivated by the Indian government’s policy and programme framework dedicated to uplifting the infrastructural facade of these cities.
The growing population in the country and increasing pressure on the finite resources of the Tier 1 cities have also contributed to the central and state governments having united forces to deploy urban development programmes such as the Smart Cities Mission, Pradhan Mantri Awas Yojana, etc. aimed at boosting infrastructure. This means that the year 2024 is likely to witness growing demand for residential projects in these emerging cities as commercial and retail investments proliferate here.
Final Thoughts
In light of these emerging trends, one key thread tying all of them together is very apparent, and that is the indisputable fact that in 2024, the stage is set for increasing demand for homes, both premium and luxury. As you navigate the complexities of the real estate market in 2024, it is key that you keep these factors in mind so that you can invest smartly.
