Top Real Estate Trends & Forecasts in 2024:
2023 proved to be a year of a new high for the Indian real estate market. Both, new launches and home sales saw a significant improvement last year and is expected to maintain the same momentum in 2024 as well. The real estate market in India has been tried and tested, and widely thought to be immune to the volatility in the market. Interestingly, the real estate market has stayed true to the expectations of real estate investors despite the number of ups and downs in the last couple of years. Fortunately, positive expectations and a rise in the momentum of growth have demonstrated the market’s ability to persist and will continue to do so in 2024 and the upcoming years as well.
The real estate market in India offers something for every type of investor out there. Considering 2024, the general Indian economy shows encouraging indicators, including a rebound from the current stock market fall, a predicted increase in the creation of new employment opportunities, and an overall growth. These indicators will ultimately lead to a rise in the demand for housing societies in the country as more and more individuals step into the housing market.
Let us take a look at some of the top real estate trends in 2024 that are predicted to rule the real estate market:
Shop-cum-Offices in Commercial
Shop-cum-offices, also known as SCO, is a commercial real estate class that has seen immense growth in the last few years. Gurugram is known as the most prominent and profitable location for shop-cum-offices in the National Capital Region. SCO plots have been made available for development and investment in several regions of Gurugram. Because of this, a new era of commercial SCO plots has emerged. Fortunately, the SCO markets have seen phenomenal growth and the early investors’ capital has multiplied multiple times as well. An investor in the SCO market can profit from longer leases, a higher income, and consistent cash flow.
House Hunting Going Digital
Digital platforms have existed forever, however, during and after the pandemic, the need for these platforms has multiplied across all industries. The real estate industry is no different. Over the last few months, individuals have made their home bookings via a digital platform. Additionally, other factors involved in a home-buying process such as a home tour, brokerage amount, rent amount, deposit amount, lease agreement, etc., have gone digital too. Furthermore, home loans can now be made online as well. This will serve as the basis for purchasing and selling real estate projects in 2024.
The upcoming housing market in 2024 will be a sellers’ market. It is anticipated that the prices of the housing market will rise for some time due to the growing demand for houses coupled with limited supply. Generation Y will be initiating real estate investments for the first time this year. Accordingly, the housing demand for residential and commercial spaces will see an increase as well. The future of the real estate market in India will be marked by an increase in demand and a limited supply, thereby creating a seller’s market.
A Rise in Property Prices
Increased demand and the market becoming a sellers’ market will eventually lead to an increase in property prices. Homebuyers are aware of the rising prices. Interestingly, some buyers are even willing to pay more than the asking price in order to secure the acquisition.
Higher Interest Rates
The era of low-interest rates is now over. The current geo-political scenario along with the mounting inflation will be putting pressure on the lending rates which are, therefore, expected to climb in 2024.
Tier-II Cities Becoming Residential Markets
An increased proportion of investments will be moving to tier-II and tier-III cities in 2024. Certain government programmes such as AMRUT and Smart Cities Mission have helped these cities turn into excellent residential hubs. Furthermore, with an increase in job opportunities and economic growth, these cities are more likely to experience a dense residential population. Also, several of the tier-II and tier-III cities are either home to some Indian as well as global MNCs, or are well-connected to metropolitan cities in the country. This, in turn, will lead to residents moving to tier-II and tier-III cities and commuting for work every day.
Rental Market Slowing Down
Post-pandemic, the desire to have one’s own home has increased. People who can afford to buy a house will be investing in one. This will reduce the demand for rented properties in large metropolitan cities. Most people these days prefer to have their own house instead of renting one, due to the increase in parity with EMI values. Furthermore, an increase in people’s affordability will lead to the rental market slowing down in 2024.
With the rental market slowing down, the demand for homeownership will increase too. The market will see an increase in younger and first-time home buyers as well.
Growth in Office Leasing
The demand for office spaces, especially the IT and retail businesses will see a rise in 2024. Furthermore, e-commerce and third-party logistics companies will feel the need to invest in warehousing, which will make them the fastest-growing commercial real estate segment. Apart from these, investments in data centres will see an increase too.
Real estate investment in India has never been an easy choice. With sales in various locations increasing significantly, it will make people understand the importance of owning their own real estate assets. With 2023 picking up some real estate trends, it is likely that these trends will continue in 2024 as well, along with any new real estate trends and forecasts that the market might see.
Adani Realty, one of the top real estate companies in India, is known for its stellar delivery reputation and legacy of building some of the most luxurious structures in the country. We promise a comfortable yet luxuriant lifestyle to our residents, along with access to world-class amenities and facilities for a secure living experience. Their trust and excellence are integrated with beautiful design aesthetics and cutting-edge construction techniques to develop exemplary projects in India’s most promising cities.
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