In the Indian real estate market, 2023 was a record year. Both new launches and home sales saw significant increases in 2018 and are expected to grow at a similar rate through 2024. After undergoing a great deal of testing, the real estate market in India is widely regarded as resilient to market swings. It's fascinating that the real estate market has held to investors' expectations over the last few years despite a few ups and downs. Thankfully, optimistic projections and a rise in economic velocity have demonstrated the market's resilience, and they will continue to do so through 2024 and beyond.
India's real estate industry offers something for every kind of investor. Positive indicators for the Indian economy in 2024 include a bounce-back from the recent stock market slump, an expected increase in new job possibilities, and general growth. These factors will eventually increase the demand for housing societies in the country as more people enter the real estate market.
Let's look at a few of the top real estate trends that 2024 forecasters predict will rule the market:
1. Store-Combined-Offices in Commercial
Shop-cum-offices, or SCO, is a commercial real estate segment that has grown tremendously in the last few years. Gurugram is the most popular and profitable location for shop-cum-offices in the National Capital Region. Plots belonging to the SCO are now available for development and investment in several districts of Gurugram. As a result, commercial SCO plots have entered a new era. Fortunately, the SCO markets have grown tremendously, and the initial investors' money has increased many times. Investors in the SCO market might expect longer leases, higher revenue, and other advantages.
2. House Hunting Going Digital
Digital platforms have always existed, but both before and after the pandemic, their significance grew for many enterprises. In the real estate industry, this is also true. In the past few months, people have used internet platforms to make their reservations from home.
The digital transformation of various aspects of the home-buying process includes:
- The rental agreement.
- The size of the deposit.
- The brokerage charge.
- The rent.
- The home tour.
Additionally, home loans can now be obtained online. This will be the basis for purchasing and selling real estate projects in 2024.
3. Market for Sellers
The real estate market is anticipated to be a seller's market in 2024. Prices in the housing market are predicted to climb for some time due to the limited supply of available real estate and the rising demand for homes. Generation Y will begin making their first real estate investments this year, and the demand for residential and commercial real estate will increase. In the coming years, India's real estate market will be characterized by rising demand and limited supply, creating a seller's market.
4. An Increase in Real Estate Costs
Price increases for real estate will eventually result from rising demand and a sellers' market. Buyers are conscious of the growing costs. Specific buyers might even go above and beyond the asking amount to close the deal.
5. Increased Interest Rates
We have finally moved past the era of low interest rates. Because of the current geopolitical climate and the increasing inflation rate, lending rates are expected to increase in 2024.
6. Tier-II Cities Transforming Into Household Markets
Tier-II and tier-III cities will receive a more significant portion of financing in 2024. These cities have become desirable residential hubs thanks to government initiatives like AMRUT and the Smart Cities Mission. Furthermore, these cities are more likely to have dense residential areas. Certain buyers might even go above and beyond the asking amount to close the deal.
7. The rental market is contracting
Since the epidemic, there has been an increased desire to buy property. Home investments are made by those who can afford to do so. As a result, there will be less demand for rental houses in large metropolitan areas. Due to increased parity with EMI values, more people would buy a property rather than rent one. In addition, the rental market will decline in 2024 as more people become more reasonably priced. When the rental market slows, there will be a greater demand for homeownership. Additionally, younger, first-time homeowners will make up much of the market.
8. An increase in office leasing
Office space will be in higher demand in 2024, especially from the retail and IT sectors. E-commerce and third-party logistics firms will also rise to the top of the fastest-growing commercial real estate market due to having to spend in warehouses. In addition, data center expenditures will increase.
Conclusion
In India, investing in real estate has always been complex. The high rise in sales in different places will let people appreciate the benefits of owning real estate assets. The real estate patterns that began in 2023 will carry over into 2024, along with any new trends and forecasts the market might experience.
