Due to middle-class urbanization, higher earnings, and better education, the Indian real estate business is growing. Smart homes, low-density housing, technological integration, and homeownership preference are trends.
The increasing growth of the middle class, urbanization, rising salaries, and improved education are driving the Indian real estate business. This transition has interested industry experts, investors, developers, and end users. The Indian residential property market achieved an all-time high of Rs. 3.47 lakh crores in FY23, up 48% year-on-year. Sales volume increased 36% to 379,095 units.
The Indian residential real estate market is shaped by low-density housing, technology integration, homeownership, and smart houses. Villas, townhouses, and planned projects promote sustainable living and utilize fewer resources. Developers are creating carefully planned, low-density complexes with open areas, lush flora, and exclusivity.
Technological integration is changing home life, improving security, comfort, and convenience. Smart houses with IoT gadgets, home automation systems, and AI-powered assistants are becoming the norm, providing a seamless living experience and setting new standards for futuristic living. Smart Home market revenue in India is predicted to reach US$6.5bn in 2024.
Many now value homeownership above renting due to the COVID-19 epidemic. This has raised awareness of the benefits of property ownership, which provides security and stability during uncertain times. In FY22, Indian banks advanced 2 trillion rupees in housing loans, indicating renewed homebuyer sentiment as more Indians bought homes.
Luxury property sales in India rose 130% in the first half of 2023. Changing consumer tastes, technology integration, and rising incomes drive this growth. Luxury residences are attracting millennials due to their increased income, urban lifestyle, and prosperity. Luxury properties are in demand due to their high ROI and rental income.
Tier 2 cities have become real estate powerhouses due to increased investment and infrastructural development. Up to 100% FDI for townships and settlement development projects is helping the real-estate sector thrive as the government promotes smart cities. Tier 2 cities like Ahmedabad are outgrowing Tier 1 cities like Kolkata and Chennai in residential real estate growth.
As the government refocuses on affordable housing, developers are readjusting their methods to reach this underserved demographic. The affordable housing project Landmark the Homes in sector 81 is expected to be completed by December 2024. One can use government-funded low-income housing initiatives or private lender/NBFC house loans to buy inexpensive housing in India.
Pradhan Mantri Awas Yojana and Rajiv Awas Yojana have encouraged developers to build inexpensive housing, making the real estate market more inclusive and accessible. With a population rising at 2.1% per year and a large chunk having little purchasing power, 40 million urban housing needs must be met.
Conclusion
Due to middle-class urbanization, higher earnings, and better education, the Indian real estate business is growing. Smart homes, low-density housing, technological integration, and homeownership preference are trends. Banks are lending more to homes due to the COVID-19 pandemic. Luxury home sales rose 130% in 2023. Pradhan Mantri Awas Yojana encourages developers to build affordable homes in Tier 2 cities, which are growing.
