Indian real estate trends is one of the key pillars supporting India’s world-beating GDP growth. The $480 billion sector accounts for a fifth of the country’s jobs. With new home sales at their highest in a decade and office rentals reaching pre-Covid highs, the real estate sector is on a roll. However, as property values rise and interest rates increase, investors should take care not to overpay.
The Indian economy is facing stiff headwinds due to economic & geopolitical uncertainties. However, the real estate industry has largely overcome these challenges, with commercial properties leading the way in the recovery drive.
Understanding Indian Real Estate Trends
Regulatory reforms and government initiatives are transforming the real estate landscape. The implementation of RERA has increased transparency, accountability and consumer confidence in the industry. Initiatives like PMAY and SWAMIH (Special Window for Completion of Construction of Affordable and Middle Income Housing Projects) are encouraging developers to provide more affordable homes.
Changes in lifestyles and demographics are also influencing the sector. For example, younger generations may prefer smart homes and environmentally friendly properties. Furthermore, rising affluence is driving a preference for luxury apartments.
With the property market becoming a sellers’ market, prices are likely to climb. However, the resurgence is driven by strong demand and not speculation. Moreover, 80% of homebuyers are end-users who would pull back if prices rise more than inflation. Hence, price increases will be gradual.
