According to NITI Ayog, the Indian real estate sector is predicted to reach $1 trillion in market size by 2030, up from $200 billion in 2021, and contribute 13% of the country’s GDP by 2025. With a tremendous expansion in retail, hotel, and commercial real estate, India’s expanding infrastructure demands are being met and real estate is rebounding to pre-pandemic times.
The real estate index has increased by 75% in the last year and is the second-best performing sector index, outperforming the benchmark index Nifty50. This states that real estate has made a return and is likely to thrive in the coming years.
As per the trends In the Indian real estate market, India’s real estate market is seeing a robust boost in demand in 2022, which is projected to continue throughout the year. The general market view for the real estate business is favorable; from commercial spaces to the residential market, the overall market picture for the real estate sector is bright. Continue reading to learn about the current trend in the real estate market in India.
- 1 Residential Sector on a Stand Out
- 2 Ready to Move in Property is Gaining Popularity
- 3 Warehousing Sector to be a Boon
- 4 Digital Consumption to Drive Data Center Growth
- 5 The Increasing Demand For Office Spaces
- 6 Upswing In Leasing Momentum and Fractional Ownership in Commercial
- 7 Shop Cum Office(SCO) is an Another Avenue for Monetization
- 8 Digital House Hunt to Progress
- 9 To Sum Up Trends in The Indian Real Estate Market
Residential Sector on a Stand Out
The present housing deficit in metropolitan areas is estimated to be over 10 million units. An extra 30 million units are needed by 2030 to handle the growing urban population. This scarcity of residential units has driven up prices, resulting in a 5% increase in capital value. Furthermore, residential property sales momentum is improving in 2022, and consumers are eager to close luxury agreements for superior facilities.
Ready to Move in Property is Gaining Popularity
The ready-to-move-in houses are becoming increasingly popular with under-construction houses losing their appeal due to the escalated wait time and increasing project failures. The popular house concept of Europe and America is making inroads in India. The builders, therefore, are embracing the concept of – building first then selling.
Warehousing Sector to be a Boon
The pandemic saw a rise in the eCommerce industry with the increase in demand for swift fulfillment and timely distribution. This led to the formation of city-specific local warehousing touchpoints. With the increase in the eCommerce industry, the eCommerce warehousing share is expected to rise to 36% by the financial year 2023. Overall warehousing transactions are projected to grow at a compound annual growth of 20% by 2023.
Digital Consumption to Drive Data Center Growth
According to Savills India, real estate demand for data centers is expected to grow by 15-18 million sq. ft by 2025. The demand for data centers will be driven up by work-from-home mandates, online education, video-based medical consultations, business-related video conferencing, and webinars. This huge demand for data centers and rapid increase in digital consumption is expected to take up the critical IT capacity to 735MW, up by 290MW, in 2022.
The Increasing Demand For Office Spaces
The pandemic altered the working environment for both businesses and individuals as a result of which people started to buy properties in suburban and rural locations causing businesses to split their offices. Companies are dispersing offices throughout tier 1 and tier 2 cities to provide staff with more freedom. Leading corporations have transferred their offices to coworking spaces and are continuing to do so to save costs and improve employee engagement.
Upswing In Leasing Momentum and Fractional Ownership in Commercial
Companies are expanding their offices to ease employees after the pandemic. Information technology’s leasing momentum is on the rise and based on the hiring in the past 18 months the incremental demand for office spaces will be nearly 1.08 million square meters. With the increasing demand for office spaces, the fractional ownership market is booming with every person investing as little as 5 lakh rupees to facilitate the development of office spaces and overcome the existing demand.
Shop Cum Office(SCO) is an Another Avenue for Monetization
India will be experiencing a huge surge in SCO concept development. With a green flag from the government, this model is proving beneficial for both developers and young entrepreneurs. Real estate developers can sell plots where buyers can construct up to four floors for office purposes. The SCO plots will help entrepreneurs to advance by owning commercial areas at reasonable rates with better amenities. Moreover, the SCO markets have been remarkable for investors with capital multiplying many folds in a short span.
Digital House Hunt to Progress
The real estate market is changing with emerging technologies such as 3D modeling, virtual reality, and real estate photography. This has fostered digital house-hunting among NRI investors and people who cannot go on a site visit.
With the help of virtual reality, people can look virtually at houses or properties without paying heed to in-person visits. With buyers already shortlisting the best options with real-time video screenings and augmented reality, digital house hunting has already improved and is poised to grow further in the years to come.
To Sum Up Trends in The Indian Real Estate Market
According to current trends in the Indian real estate market, the future of Indian real estate is not only bright but also positioned to develop in the next few years. Several aspects, such as pricing, buyer behavior, demographic shifts, and the overall cost of raw materials, will continue to influence the real estate industry’s various touchpoints.
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