As one of the prominent recovering sectors in India, real estate market did extraordinarily great in India. In a recent report, the real estate market is expected to grow around 10% during 2023-2027. This will help the overall GDP to grow by 8%.SSS
Here are four reasons behind the sale surge of real estate properties in 2023 as per Blox which is India’s first technology-based and consumer-centric real estate buying platform.
- Infrastructure Growth: The sudden infrastructure growth is one of the reasons behind the rising demands of real estate properties. Mega projects like airports (Navi Mumbai International Airport), highways, connecting bridges (Mumbai Trans Harbor Link) metros etc. This leads to qualitative and quantitative real estate growth of every nation.
- Favourable Government policies: The government aims to revive the real estate sector after the massive loss of pandemic period by introducing some favourable policies like Pradhan Mantri Awas Yojana and Hosing for all. Besides, the Production Linked Incentive (PLI) Scheme is boosting the demand for warehouses because this scheme encourages foreign companies to find workers from India and also encourages native companies to create micro jobs. The budget also helped increasing the production of active pharmaceutical ingredients, smartphones etc which leads to the demand of more industrial properties.
- Remote working pattern: After pandemic, there are prominent companies who still carry on with work from home or hybrid working arrangements. This leads to the surging demand of larger and comfortable residential properties. The demand for nearby vacation properties is also increasing as remote working facility allows the employees to work from anywhere. The demand for coworking spaces has also increased and is supposed to go over 55 million by the end of 2023.
- Popularity of tier-2 and tier-3 cities: With the return of substantial real estate investors, more people are opting for alternative places from the crowed metro cities. This will allow the buyers to get the properties at cheaper rate and also maintain distance from the hussle bussle of big cities. Therefore, the development of tier-2 and tier-3 housing properties are thriving in cities like Hyderabad, Pune etc. Since in 2023-2024, the primary demand is the ready-to-move-in housing properties, the next fiscal year will see a competitive growth of a variety of real estate projects in these cities.
Real estate is one of the prominent sectors which contributes to the overall GDP of the country. Though the government is playing its part to help the real estate industry grow, it should also offer some tax breaks in the next budget for the home buyers. The state governments should also step in to reduce the registration fees as well. However, from the RBI monitory policies, it is evident that the country is determined for economical growth and stability.