Top 10 Real Estate Trends in India That Will Rule the Market
Real Estate is considered the safest investment avenues when it comes to parking your money. The major reason for this is that irrespective of market conditions, land rates continue to grow. Over the years, the industry has remained immune to market volatility due to the consistent demand for housing and land. This demand was further fuelled by the economic policies and leverages the Indian real estate market continues to enjoy. Here are the top ten real estate trends that will you will witness in the coming years.
10 Real Estate that Will Rule the Market
1. Digital Platform
The Indian real estate market is embracing digital platforms, with a projected $13 billion market size by 2030. Online property portals and virtual tours have surged over the years. With that, leading portals have reported a 60% increase in virtual property tours in 2023. Blockchain techglobal adoption is also rising for secure and transparent transactions.
2. Migration to Suburbs
Accelerated by the pandemic, urban dwellers are flocking to Indian suburbs, driving a 20% increase in suburban property demand (ANAROCK). Cities like Pune and Bengaluru are witnessing a notable shift towards larger homes with open spaces. This is going to lead to an uptick in the real estate market in the coming years.
3. Sustainable Housing
Sustainable and eco-friendly housing is gaining traction in India. The market is responding to heightened environmental awareness, with green buildings and energy-efficient designs becoming integral. This shift aligns with a global movement towards responsible living. This is one of the major trends that has been witnessing surge in the coming years leading to a growing demand of green housing.
4. Co Working Space
Co-working spaces are thriving in India, driven by the flexibility they offer. The sector is projected to grow at a CAGR of 17% from 2021 to 2025 as per the latest reports. With a rising number of startups and freelancers, co-working spaces are witnessing increased demand, contributing to over 15 million square feet of land over the years.
5. Investment Opportunity
Real estate in India presents a lucrative investment opportunity for those who wish to park their money in a safe haven. The housing sector alone is expected to reach a market size of $1 trillion by 2030 (NAREDCO). The implementation of Real Estate Investment Trusts (REITs) further attracts investors providing a new avenue for real estate investment.
6. Demographic Shift
India’s changing demographics, with a large youth population, impact real estate preferences. The younger demographic seeks modern amenities and affordable housing. This has fuelled the demand for smart homes with a projected 10 million connected homes in India by 2030 (PwC India).
7. Seller’s Market
The Indian real estate market is experiencing a seller’s market, driven by increased demand and limited housing supply. This upward trend is driving especially in key cities like Mumbai and Delhi wherein the prices have seen upward trends. The supply-demand gap is pushing sellers to hold advantageous positions, with a 3.7% growth in residential property prices in 2023.
8. High Property prices
India has been seeing soaring property prices especially in metropolitan areas. As per the report of NHB, residential property prices rose by 5.2% nationally, with cities like Pune and Ahmedabad experiencing significant hikes. Limited housing supply, coupled with robust demand, contributes to this upward trend, impacting affordability and leading to innovative financing solutions.
9. Slow Rental Market
The Indian rental market has witnessed a slowdown due to factors like increased property ownership and remote work trends. In 2021, rental yields dropped to around 2-3% in major cities. The shift towards suburban living and the economic impact of the pandemic contribute to this sluggish rental market.
10. Growth in Office Leasing
Despite remote work trends, office leasing is growing in India. Flexible working models are driving demand for hybrid office spaces. In 2021, Bengaluru led the country in office leasing, accounting for over 30% of the total leasing activity. This growth signifies the adaptability of the commercial real estate sector to evolving work patterns.
FAQs
1. What are the latest trends in the real estate industry?
Buying and selling at digital platforms and, rise in the demand for co-working space are the latest trends in the real estate industry.
2. Which is the fastest-growing real estate market in the world?
India is the fastest-growing real estate market in the world.
3. What are the upcoming trends in real estate?
High property prices, a slow rental market and sustainable housing are the upcoming trends in real estate.
