The Indian real estate market has seen several ups and downs in recent years. Although it faced an extremely low growth rate in the past few years, it’s catching up speed once again and gaining momentum.
Thanks to its impressive 9% annual growth rate, now is a great time to invest in the real estate market. However, you should always do your own research and figure out important facts before making any kind of investment.
To help you give a head start, here are 6 latest trends of Indian real estate market you should watch out for…
1. Growth of Real Estate Market Fueled by Rapid Urbanization
After a few quiet years, the Indian real estate market has started to grow rapidly at a rate of 9% per year. Now the experts are estimating that the Indian realty market will expand to $180 billion by the end of 2020.
The reason? It’s happening because of the rapid urbanization which is fueled by the increased demand for property in the big cities like Mumbai, Delhi, Chennai, etc.
Several famous real estate development companies are now trying to meet this increased demand in these big cities by developing luxurious and mid-budget properties.
And this is a huge opportunity for the home buyers who are looking to buy their first home in the Indian megacities.
You can find your desired property for sale in Chennai, Delhi, Mumbai, and in the other big cities that will definitely give you long-term benefits for your investment.
2. Increased Demand for High-tech House
Nowadays, you can’t ignore the effect of ever-expanding technologies even while buying your house. With recent innovations of smart home devices, smart lights, and IoTs, demand for technologically advanced and connected housing has only increased.
That’s why builders and real estate developers are building more and more high-tech residential and commercial properties that are integrated with smart home and office devices with a more green and sustainable environment.
Remember Alexa? You get it.
This way, the property buyers are getting a more green and healthier environment to live in that is always connected.
3. Constant Demand for Rental Properties
The real estate market is seeing a surge in demand for rental properties which matches if not exceeds, the increased demand for residential and commercial properties.
In big cities, this demand is even more dramatic. People from all around India are flocking to the megacities for a new career or job. That’s why they’re looking for rental properties until they’re ready to buy their own home.
That’s a big opportunity for real estate developers and normal people to build or buy a home just for the rental purpose which will generate passive income for a long time, especially in the cities like Chennai, Mumbai, Delhi, etc.
If you’re looking to invest your money, then buying a property for sale in Chennai, Mumbai, and other big cities will be one of the smartest investments to generate a second income.
4. Rise of the Need of Co-working Space
India’s real estate market is currently witnessing a huge demand for co-working spaces thanks to the booming entrepreneurial ecosystem.
There are many people in India who are choosing to become an entrepreneur instead of working in a mundane 9-5 job. And this growing Indian entrepreneurial community need office spaces to do their everyday tasks productively.
However, buying or renting an office space is still very expensive and small or midsize business cannot afford to buy one. That’s why these people with vision are looking forward to a co-working space as it is more affordable and fun to work in.
5. The Collaboration of Government and Real Estate Developer
The growth of the Indian real estate market is not limited to the high-end homes, big luxurious apartments, and commercial properties. The mid-size property market is also experiencing a recent spike in annual growth thanks to some of the unique government initiatives.
The government of India and some real estate developers have been working together to make sure everyone gets their own affordable home which fuels the growth of the mid-size property market here in India.
The Indian government has been taking up ambitious initiatives like the “Pradhan Mantri Awaas Yojana” to help every single person get their own home and the government has collaborated with a number of real estate developers to accomplish this goal to make the nation even stronger.
6. Increased Financial Stress
In spite of the recent developments and the growing demand for more real estate properties, the real estate developers are facing huge financial stress in the past few years and are having trouble to secure funding to complete the projects.
India is facing a NBFC crisis for the last few years that has significantly slowed down the financing of the big real estate developments. Banks are becoming more and more cautious due to several big financial scams by scammers like Nirav Modi and Mehul Choksi.
That’s why the developers are facing a shortage of funds to complete their projects and they’re now trying to get the funds by the other difficult financial routes. And this kind of solutions to raise funds only increase the cost of capital and delay the development of the projects.
No matter how fast the real estate sector of India is growing right now, it’s still recovering from the past low times. If the NBFC crisis continues to persist and is not resolved quickly, then this recovery will be prolonged.
In the End…
Whether you’re looking to buy a new house to live in or buying it as an investment asset to bring you recurring income, you should always do detailed research about the properties and the local market.
And understanding the current trends always helps to make the right decision. There is indeed a recent growth in the real estate market due to urbanization. The demand for high-tech housing is increasing too as well as the demand.
Analyze every the different trend of the Indian real estate market and make the right decision.
PS: Which one of these real estate trends has surprised you the most?
