New Delhi: Over the past few years, there has been a discernible transformation in India’s investment landscape, with a noticeable tilt towards real estate. Building on the substantial housing registrations observed in 2023, there exists a platform for 2024 not only to maintain this momentum but potentially exceed it.
The post-COVID era has ushered in a significant shift in the sentiments of Indian homebuyers, with an increasing number seeking to realize their dream of homeownership. The past three years have witnessed a gradual move away from renting towards property ownership.
This shift can be attributed to various factors that are expected to persist into 2024:
Evolution of Consumer Investment Preferences:
Recent years have witnessed a pronounced shift in India’s investment landscape towards real estate. Homebuyers are increasingly opting for ownership instead of renting, buoyed by a favorable buying environment. This trend is anticipated to continue into 2024, with industry stakeholders actively prioritizing a consumer-centric approach.
Additionally, as the real estate sector continues to evolve, 2024 is poised to be a year characterized by sustained growth and investor confidence. This is driven by ongoing efforts to cater to consumer needs and preferences.
Favorable Macro-economic Influences:
India’s macro-economic factors have played a role in shaping investor sentiments, with individuals, benefiting from enhanced job security and stable lending rates, viewing real estate as a reliable investment avenue. As one of the world’s leading and fastest-growing economies, India is expected to offer more opportunities in 2024, particularly for an expanding aspirational middle class seeking homes that align with their evolving lifestyles.
Geographical Emphasis:
Government initiatives such as Smart Cities and PMAY, coupled with the rise of satellite cities and a focus on robust infrastructure, have created significant opportunities in Tier II and III cities. While Tier I cities will continue to attract investors and homebuyers, 2024 is expected to witness a sharper growth curve in Tier II and III cities. These regions are taking the lead in development and are set to complement the success of established areas. Anticipated price increases in these cities reflect projections of heightened commercialization and increased economic activity, contributing to the demand-supply dynamics.
2024 could be a defining year
Building on the high volume of housing registrations in 2023, 2024 presents an opportunity not just to maintain but potentially surpass the existing momentum. However, achieving this requires ongoing collaboration among industry stakeholders, with developers shouldering added responsibilities to meet the demands of homebuyers.
In the upcoming year, we anticipate that growth will be driven by the rise of green housing and sustainable homes, a facet that is expected to reshape the industry’s landscape over the next decade.
