Residential Real Estate in India Market Analysis
Deepchand J.
Valuation & Consulting (Real Estate) more than 15 years of experience in all assets classes across India l Ex-Colliers (IPC)
Market Trends:
Urbanization: India has been experiencing rapid urbanization, leading to increased demand for residential properties in urban and suburban areas.
Affordable Housing: The government has been focusing on initiatives like Pradhan Mantri Awas Yojana (PMAY) to promote affordable housing, thereby boosting the affordable housing segment.
Pricing Trends:
Variation Across Cities: Real estate prices can vary significantly across different cities and regions. Metropolitan cities like Mumbai, Delhi, and Bangalore generally have higher property prices compared to tier-2 and tier-3 cities.
Affordability Challenges: High property prices in certain areas may pose challenges for homebuyers, contributing to a demand for more affordable housing options.
Regulatory Changes:
Real Estate (Regulation and Development) Act (RERA): Implemented to bring transparency and accountability to the real estate sector, RERA has had a significant impact on the industry by protecting the rights of homebuyers and ensuring timely project delivery.
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Goods and Services Tax (GST): The implementation of GST has streamlined the taxation structure in the real estate sector.
Impact of the COVID-19 Pandemic: The real estate sector, like many others, faced challenges due to the COVID-19 pandemic. There were disruptions in construction activities, and buyer sentiment was affected. However, the market has shown signs of recovery in some areas.
Technology Adoption: The real estate industry in India has been gradually adopting technology, including online property listings, virtual property tours, and digital transactions.
Government Initiatives: Apart from PMAY, various state governments have launched their own initiatives to boost affordable housing and attract real estate investments.
Challenges:
Inventory Overhang: Some regions have faced challenges related to high unsold inventory, impacting developers' ability to launch new projects.
Financing Issues: Availability and cost of financing can influence the purchasing power of homebuyers.
Outlook as per Quantum ProjectInfra Pvt. Ltd. : The residential real estate market is expected to witness continued growth, especially in affordable housing. Trends in remote work and changing lifestyle preferences may impact housing demands and preferences.