Imagine a market where skyrocketing Mumbai apartments are sold out in just a few days, not months or years. Tier 2 cities are blossoming into vibrant hubs, their tall towers are mixed-use developments and smart townships.
Now, let’s walk through Indian real estate 2024. How about beginning with what a homebuyer or an investor should be looking for?
Homebuyers & Investors: A Pool of Choices and Soaring Demand
India’s urban population is increasing yearly, with a large portion being young professionals. This demographic is increasingly seeking affordable and flexible living options in major cities. This demand has given birth to a new opportunity in real estate, i.e. co-living. Co-living spaces offer rents that are typically lower than traditional apartments, making them attractive to young professionals and students. A study suggests that the ‘co-living’ market in the country is expected to grow at a CAGR of 17%, and by 2024, it will touch nearly Rs 1 trillion.
Remember the post-Covid lull in Indian real estate? The cautious whispers, the hesitant investments? Fast forward to 2023, and the scene has transformed. Investors and NRIs are back, not with a whimper, but with a roar. Why? The pandemic, ironically, seems to have fueled a homeownership fire, pushing prices upwards and rental yields towards greener pastures.
Enter the world of fractional ownership, a new kid on the block that’s shaking things up. Platforms such as hBits and Strata are making it possible for investors to own a slice of property. Additionally, a recent SEBI regulation has paved the way for streamlined operations and increased investor confidence. Remember REITs? The tried-and-tested investment vehicles? Fractional ownership brings a twist to the tale. It offers a more direct, granular approach to the real estate market, allowing investors to choose specific properties and potentially enjoy higher returns compared to traditional REITs. Here’s the rub: just like any investment, careful due diligence is paramount. Choose credible platforms, understand the legal framework, and crunch the numbers before diving in.
Developers: The New Canvas As Sustainability Strikes
Sustainability is the new mantra, with green buildings slashing energy and water consumption, even boosting asset value and fetching premium prices. Niche segments and micro-markets are flourishing, with developers tailoring dream spaces with affordable and inclusive housing.
On the other side, the government and developers today are reimagining the Indian landscape, with Tier 2 and 3 cities taking centre stage. Manufacturing hubs and infrastructure development are fueling a housing boom, offering exciting opportunities to build vibrant communities.
Real Estate Brokerages: From Hustlers to Architects
The year 2024 demands real estate brokers become trusted advisors and wield expertise. Deep market knowledge, legal understanding, and proptech finesse are the new must-haves. Think virtual tours, tech-savvy, seamless post-sale support, and hyper-personalisation that tailors dreams, not just sells houses.
Strategic partnerships with developers, banks, and local communities will build empires. As empires can’t be built alone, new-age platforms that embrace collaboration are emerging.
As the dust settles on 2023, 2024 reveals an Indian real estate landscape ready to transform. From co-living hives to sustainable sanctuaries and data-driven decisions to human-centric connections, the year ahead is woven with innovation, purpose, and possibility. Investors will venture into new avenues such as fractional ownership, developers will focus on Tier 2 and 3 cities, and brokers will evolve into trusted advisors. The question isn’t “What’s next?” but “Who are we to become?” Get ready for the Indian real estate revolution as the curtain rises in 2024.
The author is Founder & CEO, Homesfy.in.
