As the fastest growing economy, India continues to be at the center of our journey to become the world’s third largest economy. The Indian real estate market has witnessed unprecedented growth in 2023, exceeding all expectations and breaking new records. In all dynamic economic climate conditions, there is a house where user confidence increases, which makes a great contribution to the housing need.
The main reason for this is factors such as urbanization, expansion of the middle class and infrastructure. Foreign investment and government support also contribute to economic growth. As the urban economy grows, this demand is vividly manifested in the unsatisfied demand for housing, commercial space and basic infrastructure to support urban transformation. India’s seven largest cities (including New Delhi, Mumbai, Bengaluru, Pune, Hyderabad, Chennai, Kolkata) recorded an annual growth rate of 31% in 2023. Here are some reasons for this difference.
Rapid growth of Urbanisation
Almost more than half of the country’s population lives in cities, making it one of the largest countries in the world. This housing need is expected to continue in the coming years as more people move to urban areas in search of work and better opportunities. In 2035, this number will reach 675 million. This demographic wave is more than a statistic; It causes an increase in demand in the real estate market.
It is estimated that this population will be around 20-300 million people, with significant purchasing power and leading the business and real estate sectors. Millennials, who are part of the average homebuyer, are becoming more demanding, along with a new class of successful young professionals and entrepreneurs. Businesses and high-net-worth individuals are looking for luxury homes that reflect their lifestyles.
Massive Infrastructure growth
In turn, housing needs and prices are greatly influenced by the quality and accessibility of infrastructure. Effective transportation infrastructure, such as highways, airports, and public transportation, increases real estate value and increases property values in well-accessible areas. Home buyers want easy access to the business center.
High desire for Homeownership
Buyers are now focusing on owning a home rather than choosing to rent. People are starting to realize the advantages of living in their own space, focusing on work, education and entertainment. As a result, awareness of the value of home ownership continues to grow, with homes providing a greater sense of security and safety in times of uncertainty. Real estate also reduces volatility and increases return on risk. Investing in real estate is safer than other assets.
Need for Social infrastructure
The concept of mixed-use living is gaining popularity in residential areas as home buyers prefer projects with government offices and have access to office towers, parks, schools, hospitals and parked stores. Home buyers are now looking for a peaceful, independent and safe life, so the demand for urban living is increasing as it meets the public’s needs for play and security.
High NRI investments
India has become the most popular business destination for foreign investors, especially Non-Resident Nationals (NRIs) who want to own property in the country. Generation Y contributed to the real estate market with its increasing needs. Not only local investors but also foreign investors see the permanent value of housing. This is due to many factors such as the country’s economic development and business environment.
In conclusion, it can be said that the Indian real estate sector, which is the basis of the economy and the support of many sectors, should continue to grow.
