Real Estate is one of the biggest sectors in India that contributes to the GDP of the country. When the pandemic disrupted the economies across the world, realty sector also went through a downtrend. However, the situation seems to look better now as real estate witnessed a solid growth in the past few months. In fact, the industry ended the last fiscal year at a very strong footing, despite the threat of third wave. According to Knight and Frank’s report, in the fourth quarter of FY21, India’s top eight cities – Delhi, Mumbai, Bangalore, Hyderabad, Ahmedabad, Chennai, Kolkata, Pune posted a total sales of 78,600 units, highest in the past 4 years.
Why 2023 is going to be a big year?
Many realty experts believe 2023 will be that fiscal year which the industry has been hoping to see for so long. Most of the rating agencies have also estimated the growth of Indian economy in the comfortable range of 8-9%. But what will make FY 23 a bumper year for the Indian real estate market? Well, there are numerous factors that would back the growth of different realty sectors in the upcoming year.
These factors include attractive demographic dividend, sustained growth in the infrastructure, an upturn in urbanization, and last but not the least resurgence of the job market. And, it is quite obvious that the rise in the commercial activities alongside upswing in job market and income level will eventually contribute towards the demand of residential properties. Now you must be wondering that how will a surge in commercial sector lead to the higher housing sales? The coronavirus pandemic has made everyone realized the importance of owning a home and this will continue to work as a booster in the demand of housing sales. People with smaller homes are now looking to shift to bigger spaces with better communities. Besides this, fall in the home loan rates also fueled the growth of housing market. The builders also played their part in the sale soar by introducing a plethora of attractive schemes, luring the fence-sitters, and giving the market a positive push.
Commercial leasing on upswing
After taking back seat for over the last two years, Commercial Real Estate is all set to make a strong comeback. It can be evident from the fact that office leasing has seen an incremental growth, especially when it comes to the Tech, IT and Retail sector. Developers who had slashed the rates of their commercial projects by 40-50% due to slow demand, reckon there are now receiving more enquiries from retail investors.
Rise in investment activities
As everyone knows that real estate is one of the safest modes of investment in the modern era. Though during the COVID times, the investment ratio in properties saw a major drop, with the current shift in trends, real estate is once again featuring on investors’ radar. Moreover, both small and big investors have yet again shown their interest in the real estate investments. Besides this, the fragility and unpredicted results involved in stock market, mutual funds, and bonds have also made realty sector a viable alternative for the investors.