Being the second highest employment generator in the country, the Real Estate market in India looks as if it will be on the rise again soon, with many experts predicting that 2022 will be a good year for the industry and the coming future shows prospects of foreign and NRI investments as well as large leaps of growth.
While there are many speculations around how this is happening despite the pandemic, many have attributed it to the increase in numbers of consumers interested in buying a property of their own. Read on below to take a look at various factors that affect the future of Real Estate, new innovations in the industry, and much more.
Top 7 Factors That Affect the Future of Real Estate
Forecasts in the Market
Estimating by what the market now forecasts, India's future real estate market is foreseen to reach US$ 1 trillion in market size by 2030, a massive leap from the US$ 200 billion in 2021. By 2025, the well-established sector will contribute up to 13% of India's GDP. The future of real estate in India is promising, with increasing NRI investment and good government initiatives to support the industry.
The corporate environment in Indian cities is expanding, and with it, the demand for infrastructure, office space, and urban and semi-urban accommodations is on an all-time high. Combined with investors' prevailing tendency to make a property investment, the future of real estate in India is ready for take-off with an estimated growth of Rs. 65,000 crore by 2040.
Source: Indian Brand Equity Foundation
Among many things worth mentioning in the future of real estate in India are the government's initiatives to support the sector. RBI's statement to maintain standard interest rate unmoved at 4% significantly boosts the industry and forecasts a steady flow of investment.
Source: Times of India
Demand for housing in the market will increase sales by 35-40% due to the low home loan interest rates promised by the government. Finance Minister Mrs. Nirmala Sitharaman included income tax relief measures for real estate developers and homebuyers in the Union Budget of 2021-2022.
SEBI has sanctioned the Real Estate Investment Trust (REIT) platform, permitting all types of investors to invest in the Indian real estate industry, forming a prospect worth Rs. 1.25 trillion (US$ 19.65 billion) in the Indian market from 2022.
The Ministry of Housing and Urban Affairs has instructed that all the states consider easing stamp duty of property transactions to drive real estate activity, increase investment, aid economic growth, and induce better revenue from 2022.
Current Shortages in the Market
The future of real estate in the country can solve the acute shortage of housing in cities and emerging megacities. The country is also going through considerable growth in its urban population; however, there is no sufficient housing.
To meet the needs of the growing urban population would require 25 million units of affordable housing by 2030. The demand is drawing investment for the developers to take on housing projects across India's top cities. The Smart City Project is envisioned to develop 100 smart cities in India, an excellent opportunity for investors to make an investment in real estate.
Changing Landscapes in Jaipur
Moreover, India is also witnessing a shift in the definitions of the urban lifestyle. A housing space in a city alone would not suffice the modern cosmopolitan's requirements. The future of real estate as imagined now is a complete experience that will cater to the ambitions of its growing consumer base in India.
Residencies are also closely attached to the healthy, luxurious, and sustainable lifestyles people want to experience. Jaipur is one of the top Indian cities where people search for flats in Jaipur. The availability of world-class facilities and rich cultural heritage makes Rajasthan's capital city Jaipur one of the best picks to flourish in the real estate sector. Following the Rajasthan government's interest in promoting market investment, 2022 is a year the city can look forward to.
The city is already renowned for its tourist spots, cultural wealth, history, and architecture. Jaipur city is also witnessing a hike in corporate establishments and information technology. Its proximity to Delhi is also a significant contributor to the increased demand for housing space in Pink city.
Jaipur's unprecedented development puts it alongside Delhi, Mumbai, and other big names in the real estate sector.
Moreover, Builders in Jaipur foresee multiple benefits from the city's construction in housing, retail, hospitality, and commercial sectors. The future of the real estate sector in the city and the state of Rajasthan has limitless possibilities, and nobody wants to miss out.
After the agriculture sector, the real estate sector is the second-highest employment generator in the country. Real estate developers invest in centralised processes to organise the source material and hire qualified professionals in project management, architecture, and engineering to meet the growing need to manage multiple projects across cities.
Shortly, the real estate sector forecasts more job opportunities and income generation in India. Indian real estate is expected to lure a considerable amount of FDI with an US$ 8 billion capital infusion by 2022.
Mid-level cities in India can expect a significant change in their landscape in the coming years. Mega-level housing projects with optimum facilities will become a more common sight in the mid-level cities of India, and such is the rate at which the industry is developing for a more sustainable and comfortable lifestyle.
A few years ago, this vision wouldn't have been possible for the industry, but things have changed for the better despite its fall in 2020 owing to the pandemic crisis. Construction activities have also accelerated in 2022, with resources and raw materials readily available in recent times.
Innovation in the Industry
The government's policy push to affordable housing is enabling traction in residential housing, and developers across the country are revealing an enthusiastic interest in partaking in the sector's growth story.
It also requires adopting environment-friendly, enduring, robust, ecologically reasonable, energy-efficient, cost-effective materials and the right technology in construction. In the future of real estate, the triumph of affordable housing will essentially depend upon innovations in alternative technology, which will help complete cost-efficient mass production at a swifter pace.
In the future, sectors like student housing and senior tenancy will gain momentum, especially in an educational hub like Rajasthan. The unmet demand for student accommodation is high in India. India's estimated ageing population is 98 million and is expected to touch 240 million by 2050, requiring senior housing facilities.
Thus all the reasons point towards a steady growth of the industry in India. Seeing the sales trend and supply additions across cities, I am sure similar sales momentum will continue in the real estate sector's future.
As reforms pave the way for raised transparency, investors may find their way back to the residential markets. Strong economic fundamentals, government initiatives, bold reforms, and technology will continue to elevate the future of real estate in the country and the industry as a whole.
New Trends and Resilience
Even in the face of the Covid-19 pandemic, the industry showed remarkable resilience. Despite the knock the real estate market faced in 2020, like most businesses, the industry gained its pace and is on its growth to record ever-increasing investments. Once the pandemic was in its unlocking phase in the first half of 2021, India recorded investments worth US$ 2.4 billion into the real estate sector, an increase of 52% YoY.
This increase is a promising sign for the trends that will follow in the future of the real estate sector in India. In 2022, while we try to adapt to the recent developments in our post-covid lives, the residencies, office spaces, and hospitality will also undergo a significant makeover. The future of the real estate sector can flourish under these circumstances with the right innovation, imagination, and technology. To know more about current real estate trends, news, and projects in Jaipur, sign up for our newsletter to get daily updates.