Real estate has been one of the driving forces of economic growth in our country. NITI Aayog predicts that the Indian real estate market will see tremendous growth in the coming years and show a 13% rise in GDP by the year 2025. This comes at a time when the real estate business in India is undergoing a technological transformation. Several innovative strategies and solutions for reforms are being implemented throughout the industry.
No doubt, this sector is all set to witness the transformation and unprecedented growth in the coming years. While the pandemic dampened growth, the real estate industry has begun to recover after being devastated by the pandemic. Rapid urbanization, changing consumer behaviour, regulatory reforms, and the impact of COVID-19 on everyday living are all driving the evolution of this sector right now.
So, what are the trends that 2023 will witness in the real estate industry? Let’s together learn about it in this blog!
Hybrid modes of working and the impact
Despite the effects of the pandemic waning off, most workers, especially those in the IT sector, are still not back in the office. While it is still early to comment this trend will translate to more in-office work, there’s no denying its impact on real estate. Several offices are either upsizing or downsizing their space, depending on the mode of working adapted by the organization. However, studies predict that 10 -20% of the office real estate stock needs to be removed or repurposed.
Adapting to the growing needs of climate change
The real estate sector has the threat of enormous potential impacts of unchecked climate change looming over. Owners and asset managers will be looking to undertake cost-effective physical improvements to protect their buildings in the coming years. Building owners and developers could leverage a host of new incentives from governments to construct buildings that help the industry meet the increasingly challenging set of environmental regulations.
Digital house-hunts
While digital platforms existed pre-pandemic, it was during and post-pandemic that the demand for these platforms accelerated across all sectors. With the enhancement of technology, the real estate industry has reached a position where now a virtual tour of the property is easily available to a prospective buyer. In the previous year, people researched all about real estate projects on the internet and even leased/ booked their properties online.
Rental decline vs. Increased home buying
High home prices and a predicted housing market crash haven’t stopped the number of people wanting to become homeowners. The demand for rental properties in major cities will continue to decline as people these days prefer buying a house to renting it. With rising rental values that have become equivalent to EMI values and the rise in affordability in people, younger homebuyers and first-time homebuyers will most likely opt for owning a property rather than renting in the coming years.
With major trends that point out the growth of Indian real estate, the sector is expected to witness a 5% value growth. Sales momentum will increase owing to affordable rates and easy interest rates. The future looks promising, and the industry is expected to register double-digit sales growth in 2023.
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