Key trends that are shaping the real estate market in India – Money News

Real estate investment in India is undergoing a revolutionary transformation with more and more Indians choosing serenity, top-of-the-line technology, and sustainability as their primary criteria. These trends are not restricted to residential real estate, but even commercial spaces are reflecting these choices wherein smart technologies and ‘human’ elements are far outweighing traditional choices.

According to the IMARC Group, the Indian real estate market size reached US$ 256.8 billion in 2022 and the further reports suggest that the market is expected to reach US$ 780.6 billion by 2028, exhibiting a growth rate (CAGR) of 9.2 percent during 2023-2028.
More than the statistics themselves, what is ruling the real estate in India? It’s a shift of perspective and the fact that post pandemic, many traditional factors have given way to an aspirational quality of life where safety, security, health and well-being are the primary criterion when it comes to choosing real estate.

Here are some of the trends that are expected to shape the Indian real estate scenario:

AI explosion: Biometric security is passe. India’s real estate is set for a makeover with the ingress of AI to ensure a better quality of life. This includes installation of decibel sensors, tracking of lone female residents on the road at night, intruder detection, vandalism and face recognition. These and a host of other features are redefining the real estate landscape of India.

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Co-Working Spaces: Post pandemic, commercial office spaces have undergone a change. With flexible working and work from home scenarios becoming the next normal, co-working spaces are the next big thing as they grant a sense of autonomy, freedom and also an opportunity to bond with others. Though the ‘back to office’ scenario has unfolded for many companies, gig roles and professionals pursuing short term projects are definitely driving the demand for co-working spaces.

Smart Cities & Integrated townships: Quality of life, physical, emotional, and mental well-being have become a top priority for many homebuyers and investors. And with this growing demand, many developers are providing integrated townships with smart traffic management systems and also other facilities like healthcare, banks, presence of topline educational institutions, green spaces, markets, malls and other facilities. The biggest selling point here is also basic facilities like 24×7 security services, strategic location, connectivity, accessibility and more.

Smart Cities are definitely the next big thing with sustainable and green practices, waste disposal system, advanced technology integration, good healthcare facilities and reliable connectivity through a robust transportation system.

Affordable Housing: This is yet another trend that has surfaced in recent years and is expected to diversify further, across the country. More than luxury, people are opting for apartments and houses which have good connectivity, location and are easy on the budget.

Rise of digital homebuying and investments: Virtual footprints and digital homebuying have revolutionized the real estate industry by allowing developers to reach a wider audience across different geographic locations. Leveraging marketing collaterals like brochures, e-launches, and virtual walkthroughs via platforms like Skype, Google, and WhatsApp, developers can showcase properties from all angles, while data analytics provides insights into consumer behaviour and preferences. This shift towards digital methods not only saves on physical costs but also increases the likelihood of positive conversions for potential buyers, making it a smart and cost-effective approach.

For customers, the benefits are equally significant as they not only gain valuable insights into the proposed value but also get information about the floor plans and future growth potential of their potential homes or apartments. Additionally, AI-powered chatbots swiftly address their inquiries, saving time and enhancing overall efficiency for both parties involved.

The most defining change in the real estate scenario of India has also been the rise of Tier 2 and Tier 3 cities which are destination next given their potential, clean environment and affordability. The real estate sector is growing at a fast pace and is expected to grow further due to positive market outlook, rise in disposable income and favourable policies and long-term potential for value appreciation.

(By C J Singh, COO, Wave City. Views are personal)