Blogs
What's New Trending
-
- March 13, 2023
- Blog
- (0)
- 04 mins
REAL ESTATE TRENDS 2023
With new sales records of 68% YoY set in the Indian residential real estate market in 2022, the sector further demonstrated its significance as one of the country’s fastest-growing sectors. Tier 2 and Tier 3 cities have emerged as new key real estate trends in 2022 after two years of COVID’s effects, and the real estate market has set unprecedented standards that have continued its growing momentum from 2021 despite the global slump.
It is no secret that the real estate market has changed significantly during the previous ten years. Innovative real estate trends that arose in 2022 include sustainability, landscape design, gated communities, greater facilities, lower mortgage rates, and increased government support for low-income households, to name a few.
Hence, the real estate sector is predicted to experience rapid expansion between now and 2023. In line with this, as homes become more accessible and fractional ownership becomes more prevalent, NRIs and millennials wanting to invest in residential property will fuel the real estate market in 2023. A better insight into understanding investments can be read in our previous blog. A positive economic outlook will also support the market’s upward trend.
Trends of 2023
Every type of investor can find something in Indian real estate, with the exception of potential gamblers. Looking ahead to 2023, the Indian economy as a whole exhibits what can only be understood as positive signs, such as an expected rise in job creation of 8–9%, a recovery from the current stock market decline, and an 8–9% increase in overall growth. The end result of all of these would be an increase in housing demand as more people enter the housing market, which is essential for the health of the real estate industry.
The government has been developing and constructing massive infrastructure projects including motorways, new airports, metros, etc. in addition to policy initiatives like “Housing for Everyone” and the Pradhan Mantri Awas Yojana. It would be superfluous to say the obvious about how these elements encourage both quantitative and qualitative growth in real estate assets.
Here are a few significant trends to anticipate in 2023:
An investment
The market will be dominated by real estate assets and investment vehicles formed only for the purpose of investing and making money. Traditionally, the real estate business has divided the purchase of a home for personal use from the purchase of a property for investment. Some asset types are increasingly marketed as investment properties, rentals, and income-producing properties as a sign of the industry’s growth and maturing. As a result, residential real estate, which is only used for private purposes, has lost ground to commercial real estate, which generates cash.
Cities in Tier II and connectivity
In 2023, a growing number of investors looking for real estate will relocate to Tier 2 and Tier 3 cities. These cities have developed into new economic centres thanks to government initiatives like the Smart Cities Mission and AMRUT. Due to growing economic activity and employment opportunities, we anticipate that Tier 2 cities will develop into outstanding residential markets. In addition to government initiatives, a number of cities are the headquarters of Indian and international MNCs or have good connections to the metropolises.
Transport becomes more and more important for boosting the standard of living for citizens in Tier II and III cities as more people relocate there. The government’s efforts to provide efficient public transportation would boost demand for effective real estate.
NRIs making real estate investments
Indians who are not residents are currently buying homes largely for their own occupancy rather than as an investment, according to the real estate market’s present trend. The epidemic has increased demand for luxury real estate as NRIs seek to provide a safe living environment for their family. As more NRIs return home, initiatives that address this gap will gather momentum. Estate Corp has understood this and extended them services towards this.
Ownership that is fractionalized
By giving fractional owners more freedom to use their ownership interests and by making it simpler to project future payments, the new regulations, which are scheduled to take effect in 2023, are intended to make it easier for developers to acquire finance and for newcomers to enter the market. The modifications may also impose restrictions on the kinds of investment contracts that may be employed and may call for more disclosure of the terms of these investments.
Introduction of novel asset classes
The landscape is changing as a result of the introduction of new asset classes. While historically residential properties have seen most of the activity, today’s more diverse selection allows for everything from industrial to retail to beyond. A few of the asset classes that are developing and thriving in the Indian ecosystem are cold storage data centers, student housing, retirement villages, and logistical facilities. This indicates that because the market has developed to a relatively advanced point, specialized developers are increasingly focusing on types of assets.
Conclusion
The real estate market in India is growing quickly. Due to changing lifestyles, the desire for greater space, a sharp rise in the number of people wishing to buy a home over the past ten years, and the simplicity with which property investments may be made, investing in real estate is currently profitable. As a result, the real estate industry has changed to reflect the situation.
