Real Estate Industry in 2023: Luxury housing uptick expected to continue
–Mr. Kamal Khetan, Chairman & Managing Director, Sunteck Realty Ltd
The Indian real estate (RE) market is expected to experience significant and favourable growth in the financial year 2023 (FY 23), fueled by a solid structural foundation and rising demand. Due to improving standards of living and population expansion, the demand for housing infrastructure has grown than ever, further bolstering India’s real estate market. The RE sector has experienced rapid growth in the recent years, and it is expected that this trend would continue in the years to come. The Indian real estate market is predicted to reach Rs. 13,00,000 crore by 2023 and touch $1 trillion in value by 2030, generating a large number of employment opportunities. The housing market, which propels and supports the real estate industry as a whole, is poised to experience boom. Prices are predicted to climb by 7.2% nationwide, according to Reuters (4-5% in Mumbai and Delhi, 5.5-6.5% in Chennai and Bengaluru).
HIGH DEMAND FOR LUXURY HOUSING IN INDIA
In India, the demand for luxury housing continues to grow exponentially. The new normal promoting work-from-home and hybrid work have made people realise the importance of comfortable and hassle-free lifestyle. As a result, an increasing number of purchasers are gravitating toward luxury properties as a lucrative investment choice. Data from ANAROCK Research shows that in the top seven cities, 1.84 lakh units were sold in the first half of the year, of which 14%, or 25,700 units, were in the luxury housing class. Given the favourable sentiment, it is clear that the market for luxury real estate has advanced up the growth ladder. Real estate’s luxury sector appears to have a promising future. As their consumer markets grow, Plotted Development, Luxury, and Uber luxury apartments will further solidify their market positions.
MODERN TECHNOLOGY HELPS THE INDIAN REAL ESTATE SECTOR GROW
Real estate’s fundamental concept has changed, expanding beyond the four walls to provide the end user with a complete 360-degree experience. The recent changes in the demographics of homebuyers have undoubtedly had a significant impact on the real estate market. Technology has enabled the real estate industry to reach its full potential by encouraging the use of digitalization and technological tools like artificial intelligence (AI), augmented reality (AR), virtual reality (VR), big data, and analytics. On the horizon of the sector are automated homes employing the Internet of Things (IoT), AI, and other technological advances. The real estate market is being disrupted by the digital technology revolution, which also offers tremendous opportunity to the sector to reach new heights. Technology has transformed real estate in every way and will continue to play a significant part in its digital transition.
Despite a positive outlook, the expansion of the Indian real estate market will be influenced by the efforts and policies that are announced in the upcoming Union Budget, changes in mortgage rates, the state of the employment markets, and the overall economic situation.