As we usher in 2024, the Indian real estate landscape is standing at the threshold of a profound transformation. This evolution is marked by dynamic market shifts, strategic policy adjustments, and the ongoing recovery from the global pandemic. The industry is gearing up for a landscape characterized by resilience, sustainability, and a substantial infusion of technological innovation.
Reshaping Residential Real Estate: Affordability and Tech Integration
Affordability as a Driving Force:
The residential real estate market in India is poised for a paradigm shift, with a renewed emphasis on affordability. Government initiatives like Pradhan Mantri Awas Yojana (PMAY) have fueled this trend, compelling developers to align their strategies with the escalating demand for affordable housing. Simultaneously, the integration of technology, including virtual property tours, online documentation processes, and smart home solutions, is set to redefine the home-buying experience.
Abhishek Bhadra, Head of Research at Magicbricks, anticipates a surge in the tier I luxury market, driven by renewed investor interest and a stronger emphasis on sustainability and smart housing. He also predicts continued urbanization in tier II cities, influencing real estate demand in the mid and high segments.
Sustainable and Green Practices: Environmentally Conscious Development
Rise of Sustainable Living:
Sustainability is poised to take center stage in the real estate sector. Fueled by increased environmental awareness and government initiatives, developers are expected to incorporate eco-friendly construction materials, energy-efficient designs, and green spaces within projects. Homebuyers are likely to prioritize properties aligning with sustainability goals, reflecting a global trend toward responsible living.
Garvit Tiwari, Director & Co-Founder of InfraMantra, emphasizes that sustainability is not just a buzzword but a guiding principle shaping the real estate sphere in 2024. With heightened environmental awareness, homebuyers are seeking eco-friendly features, and developers are responding by integrating green technologies into their projects.
Technology Adoption: PropTech and Digitization in the Indian Real Estate Landscape
The adoption of technology, often referred to as PropTech, is set to accelerate in the real estate industry. From artificial intelligence (AI) for property valuation to blockchain for transparent transactions, digitization will streamline processes and enhance overall efficiency. Real estate platforms offering end-to-end services and data-driven insights are expected to become increasingly popular, revolutionizing property transactions and management.
Prasoon Shrivastava, Founder and CEO of Zepth, notes that technology is a game-changer in construction, with digital innovations enhancing performance and surmounting challenges. The adoption of these technologies is not just a trend but a necessity for staying competitive in the evolving landscape.
Increase in Investment in Tier II and Tier III Cities
Focus on Emerging Hubs:
2023 witnessed a notable increase in the percentage of real estate investments moving to tier II and tier III cities. Government initiatives like AMRUT and the Smart Cities Mission have transformed these cities into dynamic residential hubs. Aditya Khushwaha, CEO & Director of Axis ECorp, predicts continued positive sentiments focusing on Tier I and II cities. The luxury market is expected to remain bullish, driven by affordability, improved quality of life, and untapped growth potential.
Interest in the Indian Real Estate Landscape from NRIs
Global Interest Amplified:
A noteworthy trend is the heightened interest in Indian real estate from Non-Resident Indians (NRIs). The depreciation of the rupee against major global currencies and stable economic conditions in India have enhanced the appeal of Indian real estate for NRIs. Proptech platforms offering property management services have streamlined remote property management, boosting NRIs’ confidence in Indian real estate as an investment avenue.
Saurabh Garg, Co-founder & Chief Business Officer of NoBroker.com, highlights the increased demand for property management services, driven by NRIs seeking hassle-free management of their properties in India.
Challenges and Opportunities Ahead
While the real estate sector is poised for growth, it faces challenges such as rising construction costs and uncertainties in the economic landscape. Developers will need to navigate these challenges through innovative solutions, cost-effective construction methods, and a keen understanding of market dynamics. The shift towards digital platforms for property transactions and marketing presents an opportunity for real estate professionals to expand their reach and cater to a tech-savvy clientele.
the Indian real estate landscape undergoes a transformative journey in 2024, adaptability and a keen eye for emerging trends will be the keys to unlocking success in this dynamic and evolving market. The future promises a real estate ecosystem characterized by flexibility, sustainability, and technological innovation, shaping a better tomorrow for the industry.