As 2023 marks its entry, the Indian real estate industry is expected to steer positive development for its residential sector by recording substantial traction across markets. The residential market of top south India cities such as Chennai, Bengaluru, and Hyderabad are likely to mark 10% to 15% increase in residential demand resulting in significant increase in new project launches. The positive sentiment is likely to continue in many sub-urban markets owing to the socio-economic infrastructural developments in the region thereby turning these localities into emerging real estate hotspots.
Few other trends that are sure to rule the residential market in 2023 include.
Increasing Interest from NRI Homebuyers
South Indian cities like Chennai, Bangalore and Hyderabad have been witnessing increased interests from NRI home buyers to own a home today. Owning a home in their hometown gives NRIs a sense of safety and continuance to fall back on – in times of trouble. This also gives them an option to move back to the country upon retirement.
Millennial Buying on the rise
The south Indian residential market is expected to witness an increased interest from the millennial homebuying community owing to the thriving passion of homeownership. The recent shift in lifestyle has forced millennials to rethink their investment priorities especially those who have been spending a lot on rents. Taking advantage of the available tax exemptions, GST, Home Loan Subsidies, and other benefits, the residential segment has started witnessing an increased interest from millennials, which is expected to continue further this 2023 as well. Having analyzed the current market situation, millennials have realized real estate to be one of the best and secured investment options, which is expected to further boost investments in the sector.
The changing aspirations of homebuyers to acquire better living options like quality housing, environmentally friendly, sustainable homes that are spacious, etc., is expected to change the landscape of the residential housing segment. Budget homes that fall between the average prices of 25 Lakhs to 45 Lakhs for Chennai region and 45 lakhs to 65 Lakhs for Bengaluru region, that has huge spaces to accommodate their multifunctional needs and also located close to key hotspots of the city are expected to witness an increased demand from homebuyers which in turn is sure to boost a greater number of project launches in the particular segment. Homebuyers are also keen to invest in villa communities for a better lifestyle and other benefits. Segments like luxury and ultra-luxury are also expected to witness renewed buyer interest.
Micro markets – To emerge as key realty hotspots
Micro-markets like OMR, Navalur, Kelambakkam, Pallikaranai, Perungulathur, Mogappair, Manapakkam and Tambaram in Chennai, Kengeri, Hennur Junction, KR Puram, Bannerghatta Road etc in Bengaluru have seen a continuous influx of people from the city, owing to rapid infrastructural developments and socio-economic developments in the regions. Factors like establishment of IT Corridor, presence of reputed educational institutions and other major essentials like Multi-specialty hospitals, Railway Stations, Bus Stops, etc., along with easy connectivity to major parts of the city have made these micro-markets a favorite alternative for homebuyers. The availability of homes at a much affordable price compared to that of the metros, is yet another aspect that has made micro markets an ideal destination.
Rising Property Prices
On the other hand, the continuous increase in the cost of construction raw materials, and land value are likely to result in a minimum of 6% to 8% increase in property prices across south Indian markets. However, the growing aspiration to own a home today and invest in real estate owing to a range of benefits such as high growth potential, high returns on investment, safety and stability of income, the sector will continue to experience rising demand.
Consolidation in Real Estate
Homebuyers have become more cautious about investing their hard-earned money, hence have started looking at investing in established/credible players to avoid any kind of risk. Good track record, credibility, greater transparency, and customer confidence in reputed players will boost established players gain a stronger foothold in the south Indian residential market.
Luxury Housing Market
Luxury real estate has been experiencing a newfound interest since the pandemic has forced people to rethink the idea of home and home buying. Apart from larger space there has been increased demand for technologically equipped homes that has built space breathing luxury at its best. With price correction at its peak, it has made buyers think invest in luxury villas and apartments and hence there has been a considerable increase in demand in this segment.
On the whole Road for 2023 stays promising and stable for the industry as such.
source : indiatimes