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
- Increased Opportunities for NRIs to Invest
- Increased Desire to be a Homeowner
- Increase in Prices
- Homebuyers Leaning Towards a Non-congested Lifestyle
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’s 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.
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.
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.
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.
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.