Real Estate Industry in 2023: Luxury housing uptick expected to continue
–Mr. Kamal Khetan, Chairman and Managing Director, Sunteck Realty Ltd
The Indian real estate (RE) market is expected to experience significant and favorable growth in the financial year 2023 (FY 23), fueled by a solid structural foundation and rising demand. Due to improving living standards and population expansion, the demand for housing infrastructure has grown more than ever, further strengthening India’s real estate market. The RE sector has seen rapid growth in recent years, and this trend is expected to continue in the coming years. The Indian real estate market is expected to reach Rs. 13,00,000 crore by 2023 and touch $1 trillion in value by 2030, generating a large number of jobs. The housing market, which drives and supports the real estate industry as a whole, is poised to experience a boom. Prices are forecast to rise 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 promotion of work-from-home and hybrid work has made people realize the importance of comfortable and hassle-free lifestyle. As a result, an increasing number of buyers are gravitating towards luxury properties as a profitable 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 favorable sentiment, it is clear that the luxury property market has moved up the 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 and has expanded beyond the four walls to offer the end user 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 digitization and technological tools such as artificial intelligence (AI), augmented reality (AR), virtual reality (VR), big data and analytics. On the sector’s horizon are automated homes using the Internet of Things (IoT), AI and other technological advances. The real estate market is being disrupted by the digital technology revolution, which also provides tremendous opportunity for the sector to reach new heights. Technology has transformed real estate in every way and will continue to play a significant role in its digital transition.
Despite a positive outlook, the expansion of the Indian property market will be affected by the efforts and policies announced in the upcoming Union Budget, changes in mortgage rates, the state of the job markets and the overall economic situation.
