Our nation has experienced an extraordinary surge in urbanization in the last decade. This surge has been a direct result of the growing population, which according to the United Nations, will see an increase of over 400 million people by 2050. The expanding population will undoubtedly lead to a substantial surge in the demand for housing. The rising demand for residential properties is set to bring about a major transformation in the country’s real estate sector.
As such, SPA Group, through this blog explores the significant effects of urbanization on India’s real estate sector.
- Increasing Housing Demand
- Rise of Mixed-Use Developments
- Technological Innovations
- The Luxury Home Surge
- All-Inclusive Amenities
Urbanization in India is leading to a significant increase in the need for housing. In the past year, home loan rates have gone up due to the RBI’s efforts to control inflation. This has had a big impact on the real estate market. According to ANAROCK Property Consultants, in the second quarter of 2023, around 1,15,100 units were sold in the top seven Indian cities. This is a 36% increase compared to the same period last year when about 84,940 units were sold.
All such development has challenged real estate developers and the government to offer affordable and sustainable housing solutions.
Urbanization has led to a shift in preferences toward mixed-use developments. People are increasingly looking for integrated spaces that allow them to live, work, and enjoy leisure activities all within proximity. This demand has given rise to developments that offer lifestyle amenities like gyms, co-working spaces, and recreational facilities right at residents’ doorsteps.
India’s urbanization journey is aligning with technological advancements, including the concept of smart cities and the Internet of Things (IoT). According to ResearchAndMarkets.com, the home automation market in India is expected to grow significantly. It’s projected to reach $25.64 billion by 2030, a substantial increase from $4.83 billion in 2022.
Home automation have come to offer a wide range of smart devices and systems that enhance convenience, security, energy efficiency, and comfort in homes. Some examples include Smart Locks, Security Cameras, Lighting Systems, Sensors, Doorbell and much more.
Such innovations are not only making urban living more convenient but also more environmentally friendly.
As the urbanisation continues to grow, the industry has also witnessed a rise in the luxury home segment. In 2022, about 18 percent of the total 365,000 homes sold in the top seven cities were considered luxury, adding up to around 65,680 homes. This is a big jump from 2019 when just 7 percent of the total 261,000 homes sold were in the luxury category, which was roughly 17,740 homes. These numbers show that more and more people want upscale living spaces with all the elevated offerings.
Luxury living also means having great communal spaces. Developers are creating beautiful parks, plazas, and fun areas inside luxury neighbourhoods. These spaces bring people together, so neighbours can meet and have a good time. Plus, there’s a growing trend of townships, which are like small cities within cities. They have everything you need – homes, jobs, schools, healthcare, and lots of extras – all in one place, making life super convenient.
The trend towards all-inclusive amenities in real estate projects is gaining momentum, reflecting the desire to cater to residents of all age groups. Developers are going the extra mile to create communities that address the diverse needs and preferences of their residents.
From children to seniors, every aspect of modern developments has been designed to accommodate individual desires. These spaces provide safe and enjoyable environments for taking part in activities, socialising, and promoting a sense of community among families.
On the other hand, there’s a growing recognition of the importance of serene and nature-inspired spaces as part of urban sustainability. Modern real estate projects offer green and open spaces that not only contribute to the aesthetic appeal of the development but also promote wellness and a sense of tranquillity.
SPA Group Leading the Way
As India continues its journey toward urbanization, the real estate sector stands at the forefront of this transformative change. Bangalore, being the nation’s IT Capital, is traversing though the same urbanisation wave. The rise of the IT revolution, suburban expansion, and gated communities has laid down the foundation of the city’s real estate urbanisation.
Amidst this wave, SPA Group being the premiere real estate developer in Bangalore has emerged as a trailblazer catering to the demands of the urban population. Our developments — Frangipani Estates off Sarjapur road and Ecocity exemplify the key aspects of extraordinary living embracing the likeliness for individual dreams, smart living, and inclusive communities with a wide array of natural amenities.