Despite the global downturn, the Indian real estate sector is thriving, according to experts.
Despite the fact that global housing industry is in a recession, real estate consultants predict that 2023 will be a year of expansion and progress for the Indian market, thanks largely to the economy’s resilience and significant end-user residential demand.
International real estate
Interest rate increases in the United States have resulted in project cancellations. According to sources, property investment returns in the United Kingdom declined 10.4% in 2022, following gains of 20% in 2021. Meanwhile, Asian real estate markets have been resilient in recent months. According to Credit Suisse research experts, Singapore property would be a “beacon of light” despite the worldwide housing crisis.
Sustained urbanisation will foster expansion in Indian real estate.
“The Indian real estate industry is very much matching the resilience displayed by the Indian economy despite pressing issues. In the future years, real estate is predicted to contribute a higher percentage of India’s GDP and boost its market size. Growth levellers are even, and momentum will most significantly boost in magnitude. While the global real estate business has seen a slowdown and sales have plummeted, the Indian real estate sector stands as a great example of overcoming adversity and showing prospects of consistent development in the years ahead. “The Indian real estate business is now prospering, despite difficulties encountered by the global real estate market,” says Yash Miglani, MD Migsun Group. This achievement is being driven by a multitude of reasons, notably robust economic development, favourable demographics, and a rise in foreign investment. In recent years, India’s economy has grown rapidly, averaging over 7% every year. This has resulted in growing salaries and boosted house demand, both from first-time buyers and those eager to improve.”
Beneficial demographics
Favourable demographics are also at work, with a younger generation that is rapidly urbanising and looking for higher-quality homes. “In India, house ownership as a percentage of the population is low, and with rising urbanisation, demand for housing in India has preserved its buoyancy,” said Anshuman Magazine, Chairman & CEO – India, South-East Asia, Middle East & Africa, CBRE. In 2023, this is likely to reach new heights. This can be observed by the fact that ready to move inventory is nearly depleted, and buyers are now only obtaining possibilities in under construction projects, indicating a strong requirement for housing units. India has the distinct benefit of a vast and youthful labour pool, and it has risen in the global business climate classification and remains an appealing market for global investors.
Infrastructure expenditure is critical to India’s real estate development.
Infrastructure expenditure on roads, metro rail, and other amenities has kept India’s real estate market afloat. “Significant capital investment on infrastructure and asset-building projects has been a significant driver that has bolstered growth multipliers in the real estate ecosystem,” the magazine continues. During difficult times, businesses have looked to India as an appealing, robust, and cost-effective investment location to help them cut expenses.”
Foreign direct investment
Foreign investment has also played an important role in driving the Indian real estate industry. In recent years, a number of significant foreign investors have poured money into the country’s real estate sector, drawn by the opportunity for long-term growth. This has served to compensate for any slowing in domestic demand and keep the market afloat.
Disclaimer: The views expressed above are for informational purposes only based on industry reports and related news stories. PropertyPistol does not guarantee the accuracy, completeness, or reliability of the information and shall not be held responsible for any action taken based on the published information.
