Rising Demand in Real Estate Sector

Real estate is one of the most important pillar of the Indian economy. Rapid urbanization, altering consumer behavior, regulatory reforms, and the influence of COVID-19 are all fueling this pillar’s evolution right now. After being hammered by the pandemic, the real estate industry has begun to recover.

The year 2021 marked a turning point in the Indian residential real estate sector. The strong home market momentum is predicted to continue in 2022, with sales likely to reach pre-COVID levels.

A major chunk of homebuyers pan-India are demanding 2 BHK homes, closely followed by 3 BHKs.

The service-class buyers are driving the housing demand. Pan-India (includes Mumbai, Delhi NCR, Bengaluru, Chennai, Hyderabad, Kolkata, and Pune), the service class has been driving the housing demand, at 68%, followed by the business-class buyers, at 18%, and professionals at 8%.

The mid-to-high-end segment homes which cost between Rs.40 lakhs to Rs.1.5 crore are the most preferred, accounting for 79% of the total demand. 

Among the seven cities, demand for houses costing over Rs.5 crore was 1% while those below Rs.40 lakh were around 10%. Demand for mid-segment units costing between Rs 40-80 lakh was the highest, at 42% while 37% demanded units costing between Rs 80 lakh-1.50 crore.

Real estate witnessed a revolutionary trend. The real estate business in India is undergoing a technological transformation. Several cutting-edge strategies and solutions are being implemented throughout the industry. As a result of these new developments, the market’s growth trajectory has increased. One of the most well-known developments in home automation showcases a fantastic mix of technology and real estate. These types of venues have enormous potential to attract a wide range of investment opportunities as well as future-oriented buyers, particularly millennials.

The changing real-estate market dynamics have resulted in a gradual growth of non-resident Indian investment over the last few years (NRIs). Furthermore, since the establishment of the FDI (foreign direct investment) road, India has been the preferred site for NRIs to pool their funds. The sector will undergo a paradigm shift in the coming years as the influence of non-resident Indians grows.

Property ownership has become increasingly popular. Although this has aided in the formation of good consumer sentiment toward residential real estate, it was the support of the government and banking industry that got things started. Demand and supply metrics improved as a result of the convergence of these two elements.

Many homeowners have realized the practicality of larger homes after spending a significant amount of time working indoors. As a result, demand for slightly larger homes with multifunctional areas such as workstations and activity space, as well as extra breathing room, has skyrocketed.

There’s no denying that the real estate sector is undergoing huge changes, with so many new, positive developments.