A favorable economic outlook will govern the growth of Indian real estate in 2023. The positive outlook will contribute to the market’s improvement, supported by factors including numerous HNIs investing in luxury properties, the emergence of first-time homebuyers, nominal interest rates, and many more.
Experts believe the property hike is just around the corner, which can occur in 2023.
The real estate market exhibited a growth rate of 9.2% (CAGR) during 2022-2023. It is also anticipated that the real estate sector will be close to reaching 13,00,000 crore by 2023. So, what does it signify? Optimistically, 2023 and the upcoming years can be bright for the Indian real estate sector.
The Outlook of Indian Real Estate in 2023!
The Indian real estate market hoped to see sunshine in 2021 after the pandemic affected this sector adversely. Concurrently, rationalization favored and helped the industry, especially the housing segment, to witness a surge in demand.
2020 was fierce for many businesses, including the real estate sector. No one wants to recapitulate the pandemic outbreak and the misery brought about by the covid-19.
Now that we have entered 2023, the Indian real estate sector has shown resilience and withstood market volatility. All thanks to urbanization, rising incomes, and a growing population that has helped overcome many businesses struggling after the demonetization, execution of GST, the establishment of the RERA, and the NBFC crisis.
Undoubtedly, the Indian housing and commercial sector has constantly been burgeoning and, thus, considered a hot pick for different types of investors. Whether investing in equity, fixed deposits, or commodities, you may not come across investors who have not invested in the Indian real estate market.
The dip in real estate sales post-Covid wave was temporary. Instead, it brought a promising outlook for real estate as it continues to be an aspirational investment for short-term and long-term gains.
The unprecedented times boosted the realty sector as the investors are getting stimulus packages with an expanding economy, increasing income, and commercial operations. Many state governments also relaxed the investors by proposing rebates on stamp duty to add a cherry to the cake (although for a short duration)!
Many investors are availing of this opportunity and have started to invest in the luxury housing and commercial market in metro cities, such as Delhi (National Capital Region), Mumbai (Mumbai Metropolitan Region), Kolkata, Bengaluru, and many others.
What Will Drive Growth In Indian Real Estate in 2023?
The Indian real estate market in 2023 is required to adopt innovative ways of dealing with different customer requirements.
The reinvention will include new strategies and virtual marketing methods, which will play a vital role in meeting altered norms, especially for residential buyers.
Besides witnessing the rise of sustainable and eco-friendly real estate developments, the following are the factors that can govern growth in Indian real estate in 2023:
1. Desire For Smart and Connected Homes
The contemporary lifestyle and technological advancements amplified the demand for loT-enables homes extensively. Many tech-savvy customers are looking to invest in connected home solutions for a hassle-free home experience.
So, in 2023, smart homes are the way to look forward. The surge in demand for houses equipped with smart technology also presents a dynamic opportunity for designers, entrepreneurs, builders, and investors.
2. Government Support
The announcements focusing on the interest of investors are the need of an hour. Although, the government is doing its bit by letting the economy survive the health crisis after the pandemic.
Specific policies are solely responsible for governing the growth of the realty sector, which includes soliciting the ‘Force Majeure’ clause under the RERA to extend the deadline of the project completion by at least 6 months, providing taxation reliefs to increase homes’ sales valued up to Rs. 2 Crore at 20% discount to circle rate, and the extension of interest subsidy for the middle-income group.
The initiatives of the RBI yielded stupendous outcomes by halting the slowdown, with the contraction narrowing to 7.5%.
The government’s support will be a substantial element in regaining the glory of the Indian real estate sector in 2023.
3. Preference Towards Investment in Commercial Spaces, Including Co-Working
Indian real estate market witnessed a boom in 2022 with a fillip in commercial spaces, particularly co-working. This rise in demand, refreshed after 2 years of lockdown, resulted in constant economic downfall.
The emergence of numerous startups, including IT hubs, Internet and Information Services, and many other growing businesses, surged demand for office spaces.
Moreover, millennials are taking over the economy of India, which is why the real estate sector is adapting urban density with solutions such as co-working. With the rise in freelancers and work-from-home culture, co-working is already popular among professionals who want to thrive in communities of like-minded people.
What Else Can the Government Do to Steer Growth of Indian Real Estate in 2023?
Today, real estate is a colossal segment supporting 250+ ancillary industries. Thus, the government should launch more schemes like the SWAMIH (Special Window for Affordable and Middle-Income Housing), a 25-crore offering to ensure the seamless completion of all stressed and stalled projects.
The primary objective of such schemes is to unlock funds for financial institutions like banks or Non-Banking Financial Companies (NBFCs) and ensure the investors get the property they are looking for. These schemes will also preserve the economic cash flow.
Expectations for the Indian Real Estate in 2023 for the Financial Year 2023-2024
To ensure the constant growth of the Indian real estate sector and frequent liquidation, the enticing commercial deals with decent ROI provided to the investors will help sustain the market momentum.
If you check the realty graph of India, you will perceive consistent growth in this industry over the past 3 decades. It has led to the building of many businesses, boosting incomes, and enhancing the lifestyle of many individuals.
Looking at the current scenario of Indian real estate in 2023, it is expected that Non-Resident Indians (NRI) will put more money into this industry, both in the short-term and long-term perspectives. Hence, many states, including Bengaluru, Delhi, Goa, Pune, Ahmadabad, and Chennai, are favored property investment destinations for NRI.
It’s always about patience and grabbing the right opportunity at the right time. And this is the perfect time to invest! The real estate industry has bounced back and is all set to grow, so will you invest today!
Way Ahead
If you compare the stats from 2020, residential sales are up by 51% post the pandemic hit the world. As per industry experts, the prices are expected to rise more than 7.5% pan India.
Overall, 2023 is expected to be a competitive environment with lucrative opportunities for investors at all levels. So, start investing diligently today!
Good luck with your upcoming investments!
Nikita Sikri is a content specialist who simplifies complex ideas and produces SEO-driven content for SaaS and AI-writing platforms. Her strategic writing skills generate leads, nurture them and boost ROI.
1 Comment