Realty Outlook 2024
The last decade has witnessed a spectacular transformation in the Real estate sector through landmark reforms like demonetization, RERA, GST and far-reaching policies boosting infrastructure and connectivity and sustainable development. The emergence of hybrid work culture contributed significantly to the growth of real estate.
Increased urbanisation, beneficial government policies, better infrastructure, improved disposable income are some important factors which have been the key growth drivers and will propel the markets for the next three years. This is a time when tangible asset creation must form an important component of investment planning of both the end users and investors.
According to a report by Mordor Intelligence, India’s real estate industry is projected to reach 828.75 bn USD by 2028. The predictions by most research advisory firms are optimistic too. Residential real estate will continue to grow. Retail real estate will grow in selective areas based on demographics, new corridors and floating population. Commercial spaces may have few risks involved due to work from home culture and must be carefully assessed. Industrial, warehousing, hospitality, senior living, studios, serviced apartments, holiday homes and data centres are the potential segments to watch out for.
It is a dynamic real estate market that shows a promise of capital appreciation, good rentals and end user demand. Developers need to assess the risks carefully and study buyer behaviour meticulously. While, investors must have the patience to hold on to the asset for 3-5 years to reap substantial returns on investments, end-users may prefer to upgrade or take tenancy route before going for eventual ownership in order to be confident of their decision.
The sound connectivity, support infrastructure, recurring maintenance costs, better facilities, social infrastructure like schools and hospitals in the neighbourhood, besides safety, will continue to play an important part in the eventual decision making by property buyers and investors. Greenery and quality of life, Sports and fitness are also going to be important determining factors. Developers will need to keep in mind EV and all lifestyle trends while doing product planning and execution. Ease of purchase and technology need to be regularly reviewed while influencers and testimonial data will play an important part in capturing market share.
The differentiator is going to be customer centricity and word of mouth product endorsement and the image and track record of the developer will matter a lot. Developers will need to address their communication to decision makers like women taking into account their concerns to achieve higher sales numbers. And since sustainability and customisation are the needs and expectations of property buyers and investors, these must be addressed. It is a competitive world, so innovative and imaginative approach will be required to meet the buyers’ expectations which in turn will ensure organisation’s growth and success.
Dr Ananta Singh Raghuvanshi
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