A New Year offers an opportunity to make resolutions and initiate new forays. For home seekers, it is an ideal stage to commence their house hunt so that they can finalise their purchase decision and shift residence during the summer vacation in schools. So, what does 2024 have in store for you?
According to Dr Niranjan Hiranandani, Chairman, NAREDCO National, real estate in India has grown steadily over the last few years, driven by factors such as rapid urbanization, infrastructure improvements, favourable demographics, and government policies geared towards growth. With economic growth projected at 7%, India has a solid foundation for the upcoming fiscal year. A dynamic market shift and buoyant consumer demand characterise the current Indian real estate market.
Several compelling factors combine to make the Indian real estate sector a standout. These factors include rapid urbanization, political stability, infrastructure development, buoyant capital markets, institutional investment, favourable demographics, and rising incomes. A comprehensive landscape of growth, resilience, and innovation in the Indian real estate sector generates an overall sense of optimism for FY 2024-25.
He opines that under stable policy regimes, India’s real estate market continues to attract homeowners as well as institutional investors. Since India has a housing deficit, the demand for sustainable housing will remain buoyant. A strong pipeline of supplies is being developed. There has been a surge in real estate demand in metro and tier cities due to rising disposable incomes and better employment opportunities among Indian demographics. For 2024, the surge in demand will result in a 10-12% increase in property prices, along with a snowball distribution of commercial and retail space. To navigate the evolving landscape of the Indian real estate market, investors, developers, and homebuyers will closely monitor this key development at macro and global levels.
G Hari Babu, National President, NAREDCO, shares that as we reflect on the year 2023, let’s applaud the indomitable spirit of the Indian real estate industry. Despite grappling with global uncertainties and economic challenges, the sector not only withstood the turbulence but emerged more robust and dynamic than ever before. Remarkably, we witnessed unprecedented growth in housing sales, fuelled by a steadfast demand for affordable homes, an impressive upswing in the luxury segment, and the transformative influence of technology.
Looking ahead to 2024, we envisage a horizon brimming with optimism and opportunity. A stable economic landscape, complemented by government initiatives in infrastructure development and an increasing emphasis on sustainability, is poised to propel the real estate sector to new heights, he emphasises.
Pritam Chivukula, Vice President, CREDAI-MCHI, underlines that in a dynamic era of technological advancements and evolving consumer preferences, the real estate sector stands on the cusp of transformation, propelled by a demand for more than just opulence. Luxury, it seems, has found a new companion in the form of ‘smart’ homes and a green revolution is sweeping through the residential landscape as sustainability takes centre stage.
The advent of cutting-edge technologies has redefined the expectations of modern homeowners. No longer satisfied with mere extravagance, consumers are increasingly seeking residences that integrate intelligent systems for seamless living. The rise of smart homes, equipped with state-of-the-art automation and connectivity features, has become a defining trend in the real estate market.
Simultaneously, a significant shift towards sustainable living is reshaping the very foundations of residential architecture. From the materials used in construction to the incorporation of eco-friendly technologies, the emphasis is on reducing the environmental footprint of homes. Home buyers are now more environmentally conscious than ever are driving the demand for sustainable homes that prioritise energy efficiency, waste reduction, and responsible resource utilization.
However, the sector faces challenges, and the quest for sustainability comes at a time when external factors are influencing property prices. The confluence of higher interest rates and supply-demand dynamics over the last decade has already set in motion an upward trajectory for residential property prices. In this context, the real estate industry looks toward government support as a catalyst for positive change in 2024.
Advocating for continuous government backing, industry leaders emphasize the importance of incentives to alleviate the burden on homebuyers. Historical successes, such as lower stamp duties and reduced premiums, have proven beneficial and are touted as essential tools to maintain the momentum of residential sales. These incentives not only stimulate the market but also make homeownership more accessible to a broader demographic.
Looking ahead, the forecast for 2024 envisions a sustained momentum in residential property sales. Prospective homebuyers, driven by a desire for more significant living spaces, enhanced amenities, and attractive pricing models, are poised to keep the market vibrant, he points out.
