2023: The year of explosive growth for Indian real estate

The real estate industry had a challenging 2022. After dealing with the post-pandemic disruptions, the sector had to deal with new challenges, such as the rising cost of raw materials and the increasing interest rate. Despite these challenges, the overall sentiment was positive, and the sector was in a recovery mode and witnessed holistic growth across tier I, II & III cities. According to a report by JLL, sales in the top seven Indian cities rose by 68% year-on-year in 2022, the highest in over a decade. Estimates suggest that India’s real estate market will be worth $13,000 crore by 2023. A favourable economic outlook will contribute to the market’s improvement, aided by other factors such as the emergence of first-time homebuyers, a growing economy, and an increase in the number of HNIs investing in luxury properties. Luxury housing market to swell further The luxury real estate market has thrived in the post-pandemic phase and reached new heights in 2022. As consumers continue to prioritise quality-construction, spacious and feature-packed homes, the luxury market will continue to swell. The strong economic indicators and the depreciating rupee also encourage NRIs to invest in Indian real estate. In 2022, investments to the tune of $2.5 billion were pumped into Indian real estate by the NRIs. Having lived in the best destinations and experienced the luxurious lifestyle, the NRIs are attracted towards Luxury or ultra-luxury real estate houses that match their standard of living in their home country. Moreover, India has proven to be a stable investment during inflation. Investing in real estate is a significant decision because it becomes a more valuable and well-known store of significant value amidst inflation while generating increased rental income. So, when prices rise, real estate is considered an excellent investment. Millennial boom The Millennial population (aged 23-38 years) had earlier shied away from investing in real estate and would prefer renting. This trend is now changing, with this population looking to invest in real estate. The work-from-home and the work-from-anywhere phenomenon is also encouraging this group to plunge into home buying. The emerging trend of holiday homes Holiday Home was considered to be a niche segment but not anymore. Many people are considering investing in a second home that is away from the city and offers them to be closer to nature and rejuvenate in the downtime. It is an ideal place to blow off steam whenever required and can be easily rented when not in use. The demand for holiday homes will continue to spike, and many developers will continue to explore offbeat destinations and tourist spots to set up holiday homes. 2023 will be a significant year for holiday homes, and we expect the demand to increase multiple folds. The market for sustainability housing to expand With the growing consciousness around the environment, home buyers are increasingly prioritising sustainable housing. There is an increasing demand from the younger population for homes that keep the environment in mind. This trend will continue in 2023, and many first-time buyers will be interested in investing in sustainable housing. Indian real estate will continue to expand. The current geopolitical climate also contributes to the recent growth as people perceive real estate as a safe investment during uncertain times. In 2023, there will also be an increase in home rates and rental yields. The holiday destinations have posted remarkable growth along with some major cities, which will continue to be the trending. The author is the CEO and Director Axis Ecorp. Views expressed 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.