Emerging Real Estate Trends in India 2023

real estate trends india 2023

Despite traversing through a few rough patches in the last couple of years, the Indian real estate sector has significantly grown and engendered trust among investors and homebuyers. In the wake of the pandemic, the demand for home ownership has been on the rise, with customers looking for larger and more sustainable abodes that come with extra services and amenities to improve their overall lifestyle. Besides this, investing in real estate has become even more desirable than other options due to its impressive performance in the past year.

With an increasing demand for housing, coupled with the use of technology-driven solutions, there is no doubt that this industry will continue to grow over the next few years. With that being said, we take a look at some of the emerging trends in India’s real estate market and discuss how these are likely to shape the industry.

  • Continuous Boom in Luxury Market
  • According to Anarock, a leading real estate service company, the luxury residential property market in India saw a 230% rise in new launches in the luxury real estate category, with reports of a tremendous increase in sales across India‚Äôs top seven cities in Q1 2022.

    A number of factors, including the increasing disposable incomes of the middle class and the growing population of high net-worth individuals in India are driving this continuous boom in the luxury segment. Additionally, several new luxury projects are being launched in Tier-II and Tier-III cities across India, attracting buyers from all over the country.

  • Increased Opportunities for NRIs to Invest
  • Over the last few years, there has been a significant increase in the number of NRIs investing in the Indian property market. This is due to a number of factors, including the growing Indian economy, the depreciation of the Indian rupee, and the liberalization of the Indian real estate market.

    A report by 360 realtors in 2021 reported NRI investments totalled $13.1 billion in real estate, with a strong indication of a rise of 12% in 2022. Luxury projects and holiday homes have driven such interest.

    Furthermore, the inclusion of special NRI discounts and packages and the rapid urbanization and population growth has resulted in substantial price appreciation for residential property across India, which favour NRIs to invest.

  • Increased Desire to be a Homeowner
  • The millennial dream of buying a house has been a trend since the onset of the pandemic and is likely to progress powerfully in 2023 as well.

    One of the reasons for this is that renting is becoming increasingly expensive. The cost of living is going up, but wages are not keeping pace. Moreover, the pandemic has taught us all a valuable lesson about living close to nature, communities, and what matters to us the most, giving homeowners more flexibility with buying rather than renting.

  • Increase in Prices
  • Property values in India have been on the rise, given the increase in the price of raw materials and the paper-thin profit margins of developers. The rise has been due to inflation caused by heightened conditions between Ukraine and Russia, affecting the global economy.

    According to Anarock, the prime rental hotspots saw a growth of 23% growth in average monthly rentals, with the demand rising across the 7 top cities since the pandemic. However, this is good news for investors, as it means that their investment will be worth more in the future.

  • Homebuyers Leaning Towards a Non-congested Lifestyle
  • There is a growing demand for properties in more suburban areas that offer a better quality of life. Homebuyers are willing to pay premium prices for these types of properties, as they offer a much-needed respite from the chaos of city life.

    According to The Hindu, major cities witness a rise in attraction towards the peripheral areas, with the percentage ranging from 46 to 72 in FY21. These cities include Pune, NCR, Chennai, Bangalore, Hyderabad, & Kolkata.

    This trend is being driven by a number of factors, including the rising cost of living in urban areas, the increasing traffic congestion and pollution levels, and the growing preference for a healthier and more sustainable lifestyle. This trend is expected to continue to grow in popularity in the coming years as more and more people seek out properties that offer a peaceful and secluded lifestyle.

A Positive Outlook for 2023

Technological advances, customer demands, and sustainability goals will most certainly drive the emerging real estate trends in India for the next few years. It is a good time for many to make real estate investments in the majority of cities, including Bangalore, given its growing, fast-paced IT culture, developed infrastructure, seamless connectivity and better standards of living. People who want to grow their portfolio or want to add to their wealth can reach out to real estate companies in Bangalore for fruitful investments.

Sarjapur Road, located in south-eastern Bangalore, has seen a boom in the real estate market in recent years, with many new developments and projects springing up. Keeping its residents away from the city chaos yet close to all the conveniences has made the area a sought-after location for many people residing in Bangalore. Sarjapur Road is set to continue its growth in the coming years, making it an excellent investment opportunity for those looking to buy property in Bangalore.

The Indian real estate sector is transforming and poised for significant growth in the coming years. SPA Group has taken a futuristic approach by being ahead of all these developments, anticipating trends and needs to provide our clients with the absolute best of services.

FAQ

1. Is real estate a good investment in India 2023?

Real estate investment in India remains a prudent financial strategy in 2023. With the country's growing economy and increasing urbanization, the real estate market presents lucrative opportunities for long-term wealth accumulation. However, conducting thorough market research, analyzing trends, and seeking expert advice are essential steps to mitigate risks associated with this investment avenue.

2. Will real estate prices fall in 2023 in India?

The trajectory of Indian real estate market in 2023 is uncertain. Several factors, such as economic indicators, government policies, and global influences, can influence the direction of the market. It is advisable to monitor these factors closely and consult experts to make informed decisions regarding real estate investments.

3. How is real estate market in India now in 2023?

The real estate market in India is experiencing a vibrant landscape in 2023. Factors such as economic growth, government policies, and market demand shape the current scenario. While certain regions are witnessing robust growth and high demand, others may experience fluctuations. Thorough research and expert guidance are vital to effectively navigate the nuances of the Indian real estate market.

4. What is the future of real estate industry in India?

The future of the real estate industry in India holds promising prospects. With rapid urbanization, infrastructure development, and government initiatives, the sector is poised for growth. Technological advancements and sustainable practices are expected to shape the industry, providing ample opportunities for innovation and investment in the future of Indian real estate.

SPA GROUP

Creating luxury environments and building sustainable infrastructure for generations to enjoy since 1972.