In 2023, the Indian real estate market soared to new heights, with significant improvements in both new property launches and home sales. This positive momentum is anticipated to continue into the year 2024 as well. Despite the market’s ups and downs, the real estate sector in India has shown remarkable stability and consistent growth over the years, meeting the expectations of investors and demonstrating resilience in the face of uncertainty.
Looking ahead, the outlook for the Indian economy is optimistic. A rebound from the recent stock market downturn is expected, along with projections of increased job creation and overall economic growth. These encouraging indicators are likely to drive up the demand for homes across the country, leading to a rise in the demand for housing societies nationwide.
In 2023, India’s housing market had a surprising boost, with more homes sold than in previous years. Even though prices went up and loan interest rates were higher, people still bought homes. Experts believe that this demand will stay strong in 2024 and might even go up even more. This prediction is based on how the Indian economy shifts and expectations of a fall in home loan interest rates. Let us now take a look at some of the top real estate trends in 2024 that are predicted to rule the market.
A shift in housing preference
Over the years, we have seen how housing preferences have been shaped by the changing lifestyle trends and evolving customer needs. In the past year, we have seen how the demand for sustainable homes has risen. With increased awareness of environmental and societal problems, homebuyers are seeking eco-friendly features and energy-efficient designs. Real estate developers are responding to this by integrating green technologies, renewable energy resources, and sustainable building practices. So, we can conclude that the year 2024 and beyond will herald an era where the real estate landscape is characterized by flexibility, sustainability, and technology.
Integration of Technology in Real Estate
Digital platforms have excited me forever. However, their use in real estate was limited until three years ago. Investors and home buyers had to visit the desired property on foot to inspect and buy it. However, during and after the pandemic, things have changed.
The real estate industry, too, has integrated technology into real estate operations. A lot of real estate developers are now open to and have digitalized. Over the past two years, individuals have made their home bookings online. Additionally, certain factors involved in a home-buying process, such as home tour, rent amount, brokerage amount, deposit amount, and lease agreement, have gone online too. In 2024, we can expect further advantages in technology adoption, enhancing customer experience, and streamlining processes across the real estate value chain.
Urbanization & Suburbanization
India is a rapidly growing nation, and many major cities like Delhi, Mumbai, Chennai, and Bengaluru are constantly improving their infrastructure to meet the growing demands. That being said, suburban cities like Pune, Indore, and Ahmedabad are not too far behind. Driven by factors such as affordability, space, and access to amenities, many investors and homebuyers see suburban living as an alternative to urban living. The rise of this suburban living is also predicted to grow even further in the coming years, which in turn has increased the demand for residential and commercial properties.
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Increasing Investment in Tier II and Ter III Cities
One of the evident indicators of real estate trends in 2023 was the increase in investments moving to tier II and tier III cities. According to the report, 44% of real estate transactions took place in tier-II and tier-III cities between January 2022 and October 2023. Experts claim that many of the suburban cities have benefitted from the various government initiatives that have transformed these cities into dynamic residential hubs. One of the main reasons why this was possible was because many of these tier II and tier III cities are either well-connected to India’s metropolitan hubs or host a small number of multinational companies.
An example of this is Pune. Pune’s proximity to Nasik and Mumbai has made it the most sought-after city for civilians to invest in real estate. Affordability, improved quality of life, and untapped potential attract investors and home buyers to these cities. Also, being close to major cities, these tier II and tier III cities are close to many attraction points that have resulted in the increasing demand for luxury and vacation homes or establishments.
Homes With Minimal Impact On the Environment
In one of the points above, we discussed how housing preference is moving to sustainability. Being sustainable means more than just using the word; it is a big part of how we shape the world around us. In the year 2023, we saw people buying homes want ones that are good for the environment. They like homes that use less energy and have eco-friendly features. Builders are making homes with amenities like solar panels, rainwater harvesting systems, and energy-saving appliances. This trend will continue even in 2024, and many real estate developers are focused on making sustainable homes.
Homes That Adhere To Modern Lifestyle
Lifestyle has always been on trend in real estate. Over the years, we have noticed how lifestyles have changed, and in 2024, there will be demand for homes that offer lifestyles driven by the evolving priorities and preferences of modern homebuyers. Homebuyers are seeking more than just a physical living space; they are looking for a place that will complement their holistic well-being. Homes amenities like swimming pools, fitness centers, co-working spaces, and recreational centers, along with lush green landscapes, are now the choice of homebuyers, and every mid-sized or luxurious real estate builder is incorporating these amenities into their establishments. In the year 2024, we will see how lifestyle-centric homes continue to soar with the significance of work-life balance and overall wellbeing. Buyers will be eager to invest in properties that offer a complete and enriching living experience.
As we look ahead to 2024, it’s evident that the Indian real estate market will continue to evolve, driven by various trends and factors. From technology integration to shifting housing preferences and regulatory changes, understanding these key trends is essential for making informed decisions in the Indian real estate sector. By staying informed and adaptable, buyers, sellers, and investors can navigate the dynamic real estate landscape and capitalize on emerging opportunities in 2024 and beyond.
