A new year beckons to us, and with changing, times come changing trends. Real estate has been one of the best industries for investors since time immemorial. This is because of its capacity to create passive income and accrue appreciation over the long term. Compared to other forms of investments like the stock market, real estate has always been less prone to precarity and has always been dependable. As we move past the pandemic slump and as the economy gains momentum again, it’s time to look at how the property market is faring in India. Here are some of the new developments and real estate trends in 2023 worth noting.
Top 7 Emerging Real Estate Trends
1. Soaring Interests In Homeownership
There has been a tremendous psychological shift in the Indian populace. Nowadays more and more people are contemplating the ownership of houses. Expect to see a rise in the number of first-time home purchasers. The number of people who live on rent will also slowly decline as the desire to possess homes instead of rent increases.
The renters will decrease due to the buyers being able to avail of better EMI installments. Not to mention, the purchasing power of the citizens has elevated with rising income levels. There have been having seen a significant rise in the demand for luxury villa projects – due to its premium key features like privacy, outdoor gardens, personal pools and more.
2. Digitalization Of Property Dealings
We’re slowly moving into an era where people are starting to use the internet as a platform to buy, rent and sell properties. Many websites and social media platforms offer the ability to gauge and view properties from the comfort of a computer or device. There are provisions being made for finances and transactions to be done digitally nowadays. One of the best examples is the boom of platforms like Airbnb, where people can rent out properties instantly.
3. Increase In Commercial Real Estate Growth
2023 is forecasted to show a spurt in the commercial real estate sector. Commercial real estate is different from residential real estate, in the sense that it is used mainly for business and finance generation. Expect an increase in the desire and sales of commercial properties like office spaces, warehouses, shopping malls, shops and more. The increase in commercial real estate is attributed to the return of businesses back to physical and logistical-based work.
Furthermore, there are many companies that have begun investing again post-pandemic, which has created a demand to acquire physical spaces for operations and expansions. There is already an indication of E-commerce, IT, retail and logistic companies engaging in renting at exorbitant rates. Furthermore, there’s also a promising expectation of IT giants like Apple and Intel who perhaps make heavy investments in India soon.
4. Probable Growth Of The Residential Market
Recently there has been a lot of inflation and an economic slowdown. Prices have risen and interest rates have soared. But this has not deterred homebuyers from making purchases. There has still been a considerable amount of volume in sales despite these circumstances. It is expected to see a strong revival of the residential home market in upcoming times.
With the increase in demand for homes from new-generation buyers and a limited supply of houses, a market that benefits sellers are expected to arise. Premium developers have seen great potential in the real estate market for luxury homes, row houses and private villas. As per recent real estate trends, a large number of upcoming luxury projects is set to launch in the market soon.
5. Luxury Estates Continue To Sell
It is incredulous that despite so much economic instability, the luxury real estate sector has shown incredible growth. Luxury properties are high-end houses made with opulent decor, expensive materials and upscale amenities. Think of villas, beach bungalows, and lavish houses in exotic locations. The prices of such houses are exceptionally high.
Despite such inordinate costs, these houses seem to be in demand, with reports showing increases in sales post-pandemic. Apparently, the demand is so great that builders are immediately having their projects sold in relatively short amounts of time. Extrapolating from past data and judging the current growth, it is possible for this trend to continue.
6. Tier 2 And Tier 3 Properties To Shine
Generally, investors and people tend to look at densely populated and developed areas when it comes to real estate trends, often ignoring the cities with inadequate development. Tier 2, and Tier 3 were not as much in demand as Tier 1 cities because Tier 1 cities were at peak advancement with the best infrastructure. Expect Tier 2 and Tier 1 cities to start to gain precedence and receive more investment and growth in the coming future. The lower Tier cities will stand as an alluring alternative to the more congested Tier 1 cities.
7. Expect Higher Rates Of Interest
The trend of low-interest rates is expected to decline in 2023. The unprecedented levels of inflation and negative effects of geo-political events will potentially engender higher lending rates in the coming year.