India’s Residential Real Estate: A Resilient and Booming Sector Defying Global Headwinds
India’s residential real estate sector has been in the news very much for its strong outlook. This has been due to the fears of a recession similar to the one in 2008. In the event of one, people would not have enough money to invest in a home.
As of 2023, certain economies in Asia and the West reported slipping into recession. In the midst of this, the Indian economy crossed this phase due to a strong emphasis given to development. Thus, the Indian economy defied global headwinds to move ahead. Rather, it rose up in its ranks to become the world’s fifth-largest economy.
The demand for new residential housing units has kept on steadily increasing in the last few years and continues to do so. Real estate is a very stable asset in India. The demand will only keep increasing, with India becoming the world’s most populous nation. Hence, the residential real estate market will be a long-term stable contributor.
As a result, the major metros, including Delhi, Mumbai, Bengaluru, Hyderabad and Chennai, have seen an increase in real estate prices. The average price rise has been forecast at 5 % – 6 % in the next three years.
A majority of India’s 1.4 billion population are youngsters who fall in the under-30 category. With lower home loan rates, it becomes easier to invest in a residential unit. Most of the current home buyers fall in the late 30s and early 40s group.
Local initiatives in boosting India’s residential sector
Path-breaking initiatives by the government have helped boost the residential real estate sector. New projects have been centred in the suburban areas to reduce traffic congestion, easy access to workplaces and other facilities too. These projects have been connected via national highways or ring roads to reduce travel time and easy access to the city. One such example is the ORR (Outer Ring Road) network in Hyderabad. Major tech and business parks have come up along this road, thus prompting real estate developers to plan their residential projects in the vicinity.
Initiatives like the smart cities mission and national highways development program improve connectivity leading to increased interest in residential real estate investments. Also, reforms like RERA Real Estate(Regulation & Development) Act have brought the sector transparency. It empowers home buyers with protection against potential losses through fraud or other reasons. Hence, potential buyers have high confidence levels to invest in homes now.
Digitisation in India’s residential real estate
The introduction of biometric identification markers AADHAR, document registry DigiLocker and payment methods such as UPI have revolutionised transactions and document storage. This prevents fraud and reduces the traditional cumbersome processes involved in property registrations.
Thus, strong reforms in India have brought about transparency and increased investor confidence in the real estate companies in Hyderabad. The show has just begun. Hence, global headwinds could only turn sideways and go away after reaching Indian shores.
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