Future of Real Estate in India

26 Jul, 2021

Real Estate is one of the most profitable, dynamic, and at the same time risky markets. It contributes 8% of the GDP of India, and it is growing at a rapid rate. The future of India's real estate is very bright due to various factors such as an increase in the living standard of people and lower interest rates.

A $1 Trillion Market by 2030

By 2030, India's real estate market is expected to be $1 trillion, which will also increase the demand and value of the land. The importance of this number is, it is equal to the size of its power sector today. Therefore, a $1 trillion market implies that India has a great potential to be the next China in terms of real estate development and growth and employment on the one hand and growing urban population on the other hand.

Competing with the Chinese’s and the people from other countries, India is very well-positioned to become a leading global economy. Urban development is going to be the biggest driving force of urbanization. With more and more people moving towards urban areas, there will be an accelerated need for infrastructure and other facilities such as lodging, transportation, and entertainment, etc. All these factors contribute to the growth of the real estate market in India.

Post the Pandemic

The coronavirus has affected the real estate market in a negative way. In certain cities such as Mumbai have been badly affected by this virus, people have stopped investing in Real Estate, and at the same time, it has increased land rates in other cities like New Delhi and Pune. Though Pandemic will affect property values, it is said that it will increase the property values over the next few years. So now is a great time to invest in buying land and grab new properties before prices rise again.

Most people are of the view that Indian Real-estate has become overvalued, which means that Real-estate prices may cool off for quite some time, but after some time, it would be able to keep up with the demand and would be able to attract investors. Real Estate is one of the most profitable markets in India because it contributes a lot to GDP. Therefore, people go for Real-estate as an investment option due to its profitability factor.

People today are looking for leisure apartments, and because of the increase in demand, Real-estate rates have gone up. Therefore, people are looking for more spacious and luxurious houses and apartments. With the focus shifting towards environmental-friendly systems, there will be very less demand for energy consumption in the future. In addition, there is a shift in trend from personal living to commercial living, which gives good scope for real-estate developers to play their role efficiently by providing them with services that make it easier for people to work on the go rather than spending their valuable time to travel back and forth.

In India, people are investing in real estate as a long-term investment option. Real Estate is one of the safest ways to invest your money because of its return on investment (ROI).

Smart Homes are the Future

(https://yourstory.com/2020/10/future-real-estate-india-ai-smart-home/amp) A smart home is a fully automated home that includes a smart lighting system, an electricity monitoring system, and more. There has been an increase in demand for smart homes from investors, which would help the real estate market, grow within a couple of years.

The existence of a smart home is dependent on several factors.
Investors in the Indian real estate market are cautious and responsible when considering the purchase of the property. Therefore, they need to understand all the aspects of investment. They want to know the local market, what real Estate would be useful in that area, how much they will earn, etc.

Smart homes make life easier for their occupants. It gives you the freedom to work from anywhere, anytime, and it ensures efficient control over your electricity bill. Smart homes are the future, and with technological advancement, things will only get better in terms of smart homes, and with that real estate market in India too will grow significantly.

Online and Automation

Everything is going to be online these days. As a result, there is more demand from customers in the real estate market as well as developers for digitalization and automation of their systems. This would reduce human error, which is likely because of a person or an agent's negligence. With technology being introduced, there will be a significant change in the way people buy and sell products. For example, people have started preferring online and mobile apps for transactions rather than going to the property brokers.

With the increased use of technology, there are several users who want to save their time by using an app that can help them develop a profile on behalf of an agent or developer. This way, the customer can view properties according to his/her need choose the one that he/she wants without much hassle.

Investment Opportunities are Huge

(https://www.businessinsider.in/business/news/opinion-the-future-of-real-estate-investing-is-fractional/articleshow/81924005.cms) Investment opportunities in the Indian real estate industry are huge. Today, investment opportunities have increased due to the expansion of Information technology and rapid digitalization.

The cost of construction for every property today has decreased drastically because of machine-based processes. Machines are more efficient than human work, which reduces the cost and time taken to build a property. Therefore, investments in this sector are likely to increase in the future, and thus, more people will be attracted to this sector. With investors expecting returns of their investments sooner than later, the real estate market will witness a boom within the next couple of years.

Summarizing

Here ends your guide to the future of real estate in India. We hope that you have found this article to be useful and informative.
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