Shaping the Indian Real Estate Market

Introduction

The Indian real estate market has emerged as an attractive option for investors, offering credible investment opportunities and promising returns. As compared to other investment options like gold, mutual funds, or cryptocurrency, experts consider the Indian real estate market as a favorable place to invest. However, conducting independent research is crucial before committing funds to this market. This blog explores the shaping of the Indian real estate market and highlights key trends and investment opportunities.

Shifting Consumer Tastes in Housing

Consumer preferences for housing have undergone a significant shift. With the rise of remote work, more people are opting for suburban areas, seeking larger homes and an improved quality of life at comparatively lower prices. The Anarock Consumer Sentiment Survey confirms this trend, with 43% of respondents expressing a preference for moving to the suburbs. This increased demand has led to manufacturers focusing on developing new inventory in suburban areas.

Generation Is in Charge Now

Millennials have emerged as the key drivers of demand in the real estate market. The uncertainty in the stock market, recent incidents in the financial sector, and the impact of the COVID-19 pandemic have made millennials consider homeownership a top priority. The desire for safety and security has prompted many millennials to choose homeownership over renting, making real estate investment a popular choice for this generation.

Expected Cost Increase

The Indian real estate market is witnessing an increase in construction costs due to rising prices of cement, steel, and labor. As a result, developers are likely to raise property prices by five to ten percent. Some developers have already implemented price hikes, and others are expected to follow suit. Despite the cost increase, low home loan rates, developer offers, and discounts make it an opportune time for prospective buyers to invest.

Focus on Health and Fitness Centers

The demand for designated walking trails and open green spaces has increased significantly. Seventy-two percent of respondents in a recent survey deemed walking trails as important, while sixty-five percent favored open green spaces. Developers are considering integrating health and fitness amenities, such as walking trails, to cater to this demand.

Integration of Shared Office and Living Spaces

The work-from-home (WFH) culture has prompted real estate developers to consider incorporating co-working spaces within residential projects. Existing clubhouses can be converted into co-working spaces, and new developments can include them from the start. This trend aligns with the changing needs of individuals who require dedicated workspaces within their residential complexes.

Rise in Demand for Workplaces

The vaccination drive and low infection rates have led to increased business activity in India. The real estate industry has embraced digital technologies to enhance productivity, stability, and business continuity. As a result, office leasing activity and home sales have shown substantial growth, presenting investment opportunities in commercial and residential sectors.

Renting Makes a Comeback

The introduction of the Model Tenancy Act is expected to boost the demand for rental housing. This Act aims to standardize and formalize the rental industry, attracting investments and converting vacant rental units into revenue sources. The inclusion of a specialized dispute adjudication mechanism in the Act will help foster trust between landlords and tenants.

Conclusion

The Indian real estate market is experiencing a significant upswing, with experts predicting a consistent growth trajectory in the coming years. Understanding the evolving trends and investment opportunities in this market is essential for making informed decisions. By partnering with a reliable real estate agent and capitalizing on favorable market conditions, investors can position themselves to reap the rewards of the Indian real estate market.