Real estate: Top trends that will rule in 2023

Indications suggest that in the fiscal year 2023 (FY 23), strong and positive momentum will continue to prevail in the Indian real estate market due to the stable structural basis, increased demand, and decreased home loan rates. A favourable economic outlook will contribute to the market’s improvement. Most rating agencies have forecast India’s growth to be between 8 and 9 per cent. Increased housing demand is a logical consequence of the expansion of commercial operations, the improvement of the labour market, and rising income levels. India’s real estate industry is undergoing a technological revolution. Interestingly real estate in tier two and three markets will also climb fast. Throughout the sector, numerous creative tactics and solutions are deployed to facilitate buying and selling. They include: House hunting going digital: Digital platforms existed before the epidemic, but during and after the outbreak, the need for these platforms increased across all industries. Some individuals even booked their properties online. In addition to the home tour, other portions of the home-buying process are becoming digital. Additionally, home loans can now be arranged online. This component will serve as the basis for purchasing and selling real estate properties. With time and technological advancements, the purchase and sale of real estate online will increase multiple folds. A sellers’ market: The upcoming housing market will be a seller’s market. Due to growing demand and limited supply, it is anticipated that home prices will rise for some time. Generation Y is of age to initiate real estate investments for the first time. Consequently, the demand for residential and commercial constructions increases daily. The future of real estate will be marked by an increase in demand and a restricted supply, creating a seller’s market. Increase in property prices: With demand increasing and the market becoming a seller’s market, the ultimate result would be an increase in prices. Homebuyers are aware of rising prices. Some purchasers are willing to pay substantially more than the asking price to secure the acquisition. Rising home prices have enhanced the equity of current homeowners. Higher rates of interest: The era of low-interest rates is now over. The mounting inflation and the current geo-political scenario will continue to put pressure on the lending rate. The lending rates are expected to climb in 2023. The luxury market will continue to boom: The luxury segment has been the growth driver for real estate in 2022, and the trend will continue in 2023. There will be an increased demand for bigger, high-end properties priced at Rs 2.5 crore and above. The growing trend of WFH and Hybrid Working Models is further fueling the demand in this segment. Increased desire to be a homeowner: Despite high home prices and a forecasted housing market implosion, the demand for homeownership remains strong. Younger and first-time buyers of homes will dominate the property market. This is largely because property rental rates have reached an all-time high. The increasing appreciation of the US dollar against the Indian rupee is also helping Rental market slowing down: The desire to have one’s own property has accelerated post-Covid. Those who can afford it look to buy a home, and the demand for rental properties in large metropolitan areas is expected to decline. People today prefer purchasing a home over renting because rental values have risen to parity with EMI values, and the rise in people’s affordability has led to a drop in the rental market. Office leasing will see incremental growth: Demand for leasing space, notably from IT, IT, and retail businesses, will increase. Already, large tech businesses have signed office leases with hefty price tags. E-commerce and third-party logistic companies will continue to pour money into warehousing, making it one of the fastest-growing commercial real estate segments. Moreover, investments in data centres will surge. Finally, apart from the stock market, the fragility of other financial assets has continued, making real estate a feasible alternative. In FY23, real estate will be an intriguing investment opportunity for investors with a long-term horizon and no need for immediate returns. The author is the CEO and Director of Axis Ecorp. Views are personal.  Read all the Latest News , Trending News ,  Cricket News , Bollywood News , India News and Entertainment News here. Follow us on Facebook, Twitter and Instagram.