Predicting the real estate market in a specific country like India is a complex task influenced by various factors. Nevertheless, looking at some factors, it can be said that 2023 is going to be a good year for the Indian real estate market. Although the real estate market has performed well in 2022.
According to a report, India’s real estate market is expected to exhibit a growth rate (CAGR) of 9.2% during 2023-2028. Therefore, FY’23-24 will see a strong foundation as there will be more buyers, and home loan rates will be lower. Multiple rating agencies have calculated that the Indian economy is estimated to grow by 8–9%, which will ultimately drive the growth in the real estate market. This growth can be attributed to increasing business activity, improved job markets, and higher income levels, all of which will inevitably lead to a rise in real estate demand.
Along with important policy initiatives such as “Housing for All” and the Pradhan Mantri Awas Yojana, the government has been developing and constructing infrastructure mega-projects like highways, new airports, metros, etc. These factors will stimulate both the quantitative and qualitative growth of real estate holdings.
Here are some general trends and predictions for the Indian real estate market in 2023
Steady Growth: The Indian real estate market is expected to experience steady growth in 2023. Factors such as urbanization, a growing middle class, and increased foreign investment are likely to contribute to this growth.
Affordable Housing: The demand for affordable housing is expected to remain high in 2023. The Indian government’s initiatives such as “Housing for All” and incentives for developers in the affordable segment are likely to drive the demand for affordable housing projects.
Co-living and Co-working Spaces: The popularity of co-living and co-working spaces is expected to rise in 2023. With the growth of startups and the gig economy, there is an increasing demand for flexible workspaces and shared living arrangements.
Technology Integration: The real estate sector in India is gradually embracing technology. In 2023, there will likely be increased adoption of digital platforms, virtual property tours, and online transactions, making the real estate process more efficient and transparent.
Tier 2 and Tier 3 Cities: While major cities like Mumbai, Delhi, and Bangalore will continue to be attractive investment destinations, there is also expected growth in Tier 2 and Tier 3 cities. These cities offer lower property prices, potential for higher rental yields, and improving infrastructure, making them attractive to both developers and investors.
Commercial Real Estate: The commercial real estate sector, including office spaces and retail properties, is expected to recover and witness growth in 2023. With the gradual resumption of economic activities and the return to office culture, demand for quality commercial spaces is likely to increase.
It’s important to note that these predictions are based on current trends and market conditions. However, unforeseen events such as economic fluctuations, policy changes, or natural disasters can significantly impact the real estate market.