The Indian real estate industry is the backbone of the country’s economy. This sector has seen its highest upswings and downswings in the last two years, mainly due to the events unfolding after the COVID-19 pandemic. Post the second wave subsiding, the real estate sector has remained largely resilient and has shown signs of revival. As India positions itself as the driver of the global economy and promises high-speed growth across industries, commercial real estate, increasing housing demand, and focus on metro real estate will be the key drivers of growth.
The Indian real estate sector is not just crucial due to our growing real estate demand for office space, housing, and accommodation. Still, it is also an essential growth driver for India’s economy. As per IBEF reports, the real estate sector is the second-highest employment generator in India and is expected to reach US$ 1 trillion in market size by 2030, up from US$ 200 billion in 2021. It is also expected to contribute 13% to its GDP by 2025.
To help cater to this growing demand, the real estate broker network needs to stay abreast with the latest real estate trends while adopting technology as an enabler to help them reach a wider audience. With post-pandemic driven changes to real estate buying and the growing attention of NRIs and foreign investors, real estate sales processes are changing significantly. Here is a look at the key trends and preferences that will drive real-estate demand in metro cities:
1. Advancement in Technology
Demand comes soaring in real estate and that too with stiff competition. As customers require personalized and specific recommendations, the real estate broker network needs to increasingly adopt predictive analytics and technology to accurately forecast demand, understand customer preferences, and simplify placing orders with the vendor.
Developers are also keen to use technology to gauge the demand from the users and use it to plan their sales strategies and future projects.
Technology is also being leveraged for internal real estate process management, such as
- Understanding future demands
- Inventory management, and
- Raw material procurement
As time goes by, real estate sales are increasingly becoming technology & data-driven and will become crucial for real estate developers and service providers.
2. Preference Towards Mid & Premium Segment
Since the pandemic, people are spending more time at home, with remote work also being considered by several large organizations. It has changed customer preference, and homebuyers prefer mid to:
- Premium segment homes
- Housing societies
- Plush apartments
- Gated communities
This growing trend is mainly seen in metro cities and in smaller cities where the younger population is growing and looking for an independent home.
3. Importance of Leisure, Personal Space, and Flexibility
In addition to a premium apartment, home buyers are also considering amenities provided when it comes to buying or investing in real estate. The buyers are considering new amenities as per:
- More extensive flats or apartments
- Space for specifically designed home offices
- Additional space that includes a terrace or more oversized balcony
Homebuyers also tend to prefer societies with shared co-working spaces, meeting rooms, creche, and other facilities that can help them effectively manage their work-from-home lifestyle.
4. Preference for Low-Density Projects
While COVID-19-led trends have created a shift in how close or segregated most home buyers want to stay, the cost factor also plays a crucial role in homeowners preferring to buy in a high-rise or low-density apartment complex, given that it is a relatively more affordable option.
The growing preference for low-density housing projects also has to do with changing priorities. The daily home-to-office commute is no longer the critical criterion for considering the locality to buy a home. Most customers view properties in areas with lower air pollution levels closer to nature and those that offer easy access to highways.
5. Continued Focus on Infrastructure Development and Industrial Growth
PropTech or property Technology is yet another growing trend that is prevailing in the real estate industry. Under PropTech, 6 technologies have surfaced to dominate the real estate space, including:
- Artificial Intelligence
- Internet of Things
- Robotic Process Automation
- Virtual / Augmented Reality, and
Several real estate brokers in India and providers are using PropTech to help boost their customer services, offering customers the ease of use and the ability to view the property remotely using the latest technologies.
This is a preference not just for outstation or NRI buyers who cannot physically visit the property; even local buyers prefer to first look at the property and its facilities online before visiting in person. BeyondWalls is the future and will make real estate investment and buying simple and transparent.
6. Investment Aspect to Grow
Real estate is no longer seen just from the prism of home buying or commercial use. Still, it is also considered an excellent investment opportunity by many. In India, institutional investment in real estate has doubled annually to touch $1.1 billion during Q1 2022, and foreign investment accounted for 70% of the inflow. The remaining 30% came from domestic investment, which has regained pre-pandemic levels.
With the rise in demand for co-working spaces and rising influx to metro cities given the higher job opportunities, this sector will continue to see strong interest and significant growth.
The real estate industry has displayed that despite disruptions and uncertainty, the real estate demand in India has not gone down and will not any time soon. The rising demand for co-working spaces and commercial properties from the residential property, increased demand for data centers, and other vital factors will play a decisive role in enabling the Indian real estate growth.
Metro cities will benefit significantly from this rising demand. While India is witnessing a solid real estate push, reports suggest that Bengaluru can be the country’s favourite real estate investment destination, followed by interest in growing cities like Ahmedabad, Pune, Chennai, Goa, and Dehradun.