The word ‘Recession’ brings back memories of 2008 when the global economy was hit badly. The housing market was one among those badly hit. People did not have the money to invest in new houses or other forms of real estate. Rather, many people lost the houses they bought on loans, especially in the West.
There are signs of a recession looming over the economy in 2023. Many companies across the world have cut thousands of jobs. Without jobs, people don’t have the money to invest in the housing market as they have to choose between their daily livelihood and to buy a house. Also, the rise in construction costs increases the cost of properties, so consumers are reluctant to invest in them.
But the housing market is a deal breaker in the Indian economy. Indian consumers value real estate as immovable, illiquid, having high appreciation value and giving decent rental income.
Top economists predict that the Indian economy is set to grow even amidst the fears of a global recession. Let’s peek into the reasons why the Indian housing market will grow in 2023 –
Top asset: Real estate remains the first choice for the Indian consumer. It yields steady income in the form of rents or leases. Also, its immovable and value appreciation nature makes it more attractive.
Tier-2 & Tier-3 cities: These cities will witness huge growth in the housing market due to the infrastructure push given by the Indian Government. The industrial corridor will bring economic growth to these cities with seamless connectivity to Tier-1 cities. There will be a demand for housing units as people improve their lifestyles and new people migrate here. Hence, residential real estate also develops alongside commercial real estate.
Employment opportunities: The real estate sector is hiring while the IT sector is firing. Due to increased consumer demand, the real estate sector is hiring more blue and white-collar staff. As per the IBEF (India Brand Equity Foundation) report, the real estate sector will contribute 13 % of India’s GDP by 2025. This shows the contribution of this sector to the country’s economic story.
Government-supported projects: New mega projects, including expressways, highways, airports, and seaports, will drive the housing market, too, with easy access between cities. Many new housing projects are coming up along prominent highways or expressways. One such example is the massive development of the housing sector along the ORR (Outer Ring Road) in Hyderabad.
Also, housing schemes such as the ‘Pradhan Mantri Awas Yojana’ will make a massive impact.
The Indian housing market would fuel the Indian economy even if a recession were to set in 2023. This sector will prove to be promising beyond 2023 too. It’s all about making the right choices.
Sukhii Group is one of Hyderabad’s leading real estate developers. Our mega projects like Ubuntu will create unique luxury gated communities that’ll thrive like a standalone city. So, if you’re ready to know how Ubuntu fulfils your idea of a perfect home, please feel free to contact us immediately.