One of the fastest-growing sectors in India is real estate. The Indian real estate sector is driven by sociodemographic and economic growth factors like urbanisation, income growth, and an increase in nuclear households.
According to Niti Aayog CEO Amitabh Kant, the Indian real estate sector has a multiplier effect on the economy and is expected to reach a market size of $1 trillion by 2030, accounting for 18-20% of India's GDP.
According to RBSA Advisors, the Indian real estate market is predicted to develop at a compound annual growth rate of 15% from $60 billion in 2010 to $1,000 billion by 2030, accounting for 13% of the country's GDP by 2025. Their report, 'The Outlook of the Indian Real Estate Sector,' shows that the Indian real estate market is showing significant signs of recovery as the economy is recovering from the pandemic. The residential sector of the Indian real estate industry (which accounts for approximately 3-5 percent of GDP) accounts for 80 percent of the market.
Here's How the Indian Real Estate Sector Will Change in the coming Years
Using Modern Technology to Grow the Indian Real Estate Sector
The fundamental concept of real estate has shifted, expanding beyond the four walls to provide homebuyers with a complete 360-degree experience. Recent changes in homebuyer demographics have surely had a great impact on the real estate market. By encouraging the use of technological tools like AI, big data and analytics, augmented reality (AR), and virtual reality (VR), technology has enabled the Indian real estate sector to reach its full potential.
The digital technology revolution is disrupting the real estate market but also provides a tremendous opportunity for the sector to reach new heights. Technology has transformed the Indian real estate sector and will continue to play an important role in its digital transition.
A More Sustainable Development
Recently, the Indian real estate sector is shifting more towards sustainable development. With increasing awareness about environmental sustainability, developers are focusing on green building practices. Also, the government's push towards sustainable development is expected to encourage the adoption of green building practices.
High Demand for Commercial Properties
The Indian real estate sector is also witnessing increased demand for commercial properties. With the growth of the IT and services sector, there is a growing demand for office spaces and commercial complexes. The government's push towards infrastructure development is expected to create new opportunities for commercial real estate development. The development of new airports, highways, and metro networks is expected to create new commercial hubs, leading to the sector's growth.
High Demand For Luxury Housing in India
The demand for luxury housing in India continues to grow exponentially. People have realised the importance of a comfortable and hassle-free lifestyle. Therefore, an increasing number of buyers are turning to luxury properties as a profitable investment option. According to ANAROCK Research, 1.84 lakh units were sold in the top seven cities in the first half of 2022, with 14%, or 25,700 units, falling into the luxury housing category. Given the positive sentiment, it's clear that the luxury real estate market seems to have a bright future.
Rise of Co-living and Co-working Spaces
The rise of co-living and co-working spaces is another trend that is expected to drive the growth of the Indian real estate sector. With the changing nature of work, there is an increasing demand for flexible workspaces and living arrangements. Co-living and co-working spaces provide affordable, flexible, and communal living and working arrangements, which are particularly attractive to millennials and Gen Z. This is expected to create new opportunities for real estate developers while providing a boost to the rental market.
PropertyAngel is a leading O2O (online-to-offline) second landlord platform. We are a Bangalore-based property management company offering professional property management for individual apartments, houses, and villas. Contact us at (91-80-47095974) or (91-7406484455) if you need guidance on how to invest in the right property in Bangalore.
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