The real estate market in India has been experiencing dynamic shifts and changes over the years, driven by technological advancements, demographic shifts, and economic fluctuations after the pandemic. In 2023, home buyers need to be aware of the emerging real estate trends and predictions that will shape the future of the real estate industry in India. The Market research analysts at Concorde have gathered industry trends and real estate predictions for the next five years. In this blog, let’s look at the top real estate trends and predict, and find out whether real estate is still a good investment to make.
Real Estate Trends in 2023
Let us look at some of the top real estate trends in 2023 that predict to rule the real estate market:
Technology Integration: Technology plays a pivotal role in the real estate sector. Home buying is revolutionized by augmented reality (AR) and virtual reality (VR), allowing buyers to explore properties remotely and visualize their future homes virtually. Real estate developers leverage these technologies to offer potential buyers an immersive and personalized experience.
Sustainable and Eco-Friendly Practices: Environmentally conscious home buyers drive demand for sustainable and eco-friendly properties. Green building certifications, such as Leadership in Energy and Environmental Design (LEED), will increase prominence, encouraging developers to incorporate eco-friendly features to appeal to this growing market segment.
Co-living and Shared Spaces: As urbanization grows, the demand for affordable housing options rises. Co-living spaces and shared accommodations are becoming popular among young professionals and students seeking cost-effective, comfortable living arrangements.
Smart Homes and Digital house hunting: Integrating digital platforms in the real estate industry transforms traditional homes into smart homes. Homes with smart features like automated lighting, security systems, and energy management are expected to gain traction and become the norm in top-tier metro cities by attracting tech-savvy homebuyers.
Shop-cum-Offices in Commercial: The commercial real estate sector, known as shop-cum-offices, or SCO, has expanded significantly in recent years. The National Capital Region, Gurugram, is the most well-known and profitable site for shop-cum-offices. In numerous areas of Gurugram, SCO sites have been made available for construction and investment, establishing it as the corporate center. Fortunately, the SCO markets have seen exceptional growth, greatly increasing the capital of early investors.
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Tier-II Cities Becoming Residential Markets: In 2023, more investments will go to Tier II and Tier III Indian cities. Government programs such as AMRUT and Smart Cities Mission have helped these cities become excellent residential hubs. Furthermore, these cities are more likely to see heavy growth in residential population due to the increasing employment opportunities and economic growth, as they are the home to a few Indian MNCs. It will lead to residents moving to tier-II and tier-III cities and commuting to work every day.
Current State of Real Estate Market in Bengaluru
Bengaluru has seen a significant influx of individuals worldwide as it is a start-up and IT hub. Investing in a developing market like Bengaluru presents a golden opportunity to put your money to work instead of paying rent. The city attracts a massive influx of people seeking employment in numerous MNCs, IT companies, and other industries, making the prospect of finding homes near the workplace even more appealing. Real estate investors acknowledge that the demand for property in Bengaluru has increased.
According to Knight Frank's Asia-Pacific Outlook 2023, now is the right moment for investors and homebuyers to look into Bengaluru's real estate market because residential prices in the city are expected to rise by 5% annually.
As the real estate market is thriving, Hoskote, Malur, Devanahalli, and Binnypet locations have drawn interest from buyers and developers, as it is close to the growing IT hub. While numerous houses are available in the area, the gated community plots hold the highest demand. These plots offer buyers the freedom to design their homes according to their preferences, making them particularly sought-after.
If you are interested in buying a plot in the booming location Malur, Check out our Concorde Equity, the perfect villa plot near the new six-lane Bangalore-Chennai express highway. It geographically allows easy access to the talent pool of three states – Karnataka, Tamil Nadu, and Andhra Pradesh, well connected to the NH 75 (Bangalore-Chennai Highway), this beautiful town is currently growing.
Housing Market Forecast for 2024 and 2025
The pandemic outbreak has significantly impacted the real estate sectors. Over the next five years, these factors will continue impacting regional housing markets' demand and supply. Future trends anticipated to affect the housing market include emerging technologies, shifting demographics, the status of local job markets, and the increase of remote work. India's real estate market is expected to undertake a growth rate (CAGR) of 9.2% during the five years from 2023 to 2028. Looking ahead, the future of the real estate market in India appears promising, with continued growth and evolution.
Continued Urbanization: India's urban population is projected to grow rapidly, driving demand for residential and commercial spaces in urban areas. Cities like Bengaluru, known for their vibrant job markets and educational institutions, IT hubs will remain key targets for real estate investments.
Boost in Rental Market: Future forecasts indicate that the rental market will expand significantly. Factors such as urbanization, increased job mobility, and a preference for renting over buying among millennials are expected to contribute to this trend.
Steady Price Appreciation: Property prices are likely to continue experiencing steady appreciation. However, the growth rate may vary across different cities and regions, with metropolitan areas witnessing higher price increases than smaller cities.
Considering these trends and forecasts, homebuyers and investors should stay well-informed about the changing dynamics of the real estate market to make informed decisions and capitalize on the opportunities presented in the evolving landscape.
Is Real Estate a Good Investment in the Future?
Considering the real estate forecast for the next 5 years, it is a good time to invest in the real estate market. The market shows a positive outlook, offers opportunities for capital gains, benefits from favorable policies, and has the potential for long-term value appreciation.
In the coming years, affordable housing projects and increased demand for rental properties will likely offer promising investment opportunities. However, careful consideration, study, and risk analysis are to be made before making investment decisions to prevent market risks.
As we venture into the second half of 2023 and beyond, the Indian real estate market presents challenges and opportunities for home buyers and investors. With technology driving innovation, an emphasis on sustainability, and the rise of affordable housing, the industry is poised for transformation. While real estate remains a favorable long-term investment option, thorough market analysis and understanding emerging trends will be critical for making sound investment decisions. Visit Concorde to stay updated with the latest insights into the Indian real estate market.