The outlook for the real estate sector appears highly positive in the financial year 2023-2024 with an expected growth of 8-10% in residential real estate. After two years affected by COVID, the residential real estate industry has seen exponential growth and has risen to become one of India’s most prominent and fastest-growing industries. An increase in earning potential with better employment opportunities and continued economic growth since the pandemic (which had then resulted in the economic slowdown) has now resulted in such buoyant projections by industry experts. Some other factors that have led to this expected growth are the increased awareness of home ownership, and favorable housing schemes by the government.
According to industry experts, because of government measures and other factors like companies opting for a hybrid work culture, the residential real estate sector has remained buoyant. The residential real estate market has also seen continued interest and expected growth since the financial minister opted for “Green Growth” as one of its priorities in the Union Budget. Various Real Estate developers are committed to sustainability and wellness, and both the developer and the consumer are becoming conscious of the environmental and social impact of their housing projects.
The Residential Real Estate sector is expected to grow by 8-10% in the financial year 2023-2024; this recovery of the industry within two years of the pandemic is a result of various factors mentioned above. However, the interesting point is that this rise is expected in all segments of the residential real estate market. There is an increased demand for affordable and mid–segment housing because of various favorable government initiatives like the reduction of stamp duty charges in various cities. The union budget was also holistic and growth-oriented, which has seen increased tax rebates that will pump in more liquidity into the market and this may motivate individuals to opt for buying homes, according to industry experts. This may provide an impetus to further growth in the residential real estate sector even in Tier 2 and Tier 3 cities along with the metros.
Along with the affordable and mid-segment housing sector, the luxury residential retail segment is also projecting higher growth. There are two major causes of this growth: first, the adoption of innovation and technology by the Indian Real Estate sector, and second the focus of sustainability and wellness in the housing sector. According to a CRISIL rating, large developers in the luxury segment are poised to increase their market share by 30 percent in this fiscal year compared to 15-17 % in the fiscal year 2020. The residential real estate sector in India is thus expected to see an emergence of a new asset class with its adoption of innovation and technology, and its commitment to sustainability and wellness – creating exciting opportunities for both the developer and the consumer. This expected rise in the residential real estate sector will result in employment generation, economic growth, and an uplift in urban development and social welfare.
