In India, where after agriculture, real estate employees the maximum employees in the country, have seen some tremendous changes in the past few years. From virtual reality to chatbots acting as customer care executives, real estate in India has come a long way.
The real estate investment is one of the major pillars of the Indian economy and the progress of a country is usually mapped by its infrastructure development.
The amplification of urbanization and a huge number of people migrating to cities has given a boost to the residential real estate in India. Presently the real estate in India is on the verge of a revolution and is set to become more dynamic with increasing property investment.
With the effect of urbanization, the residential property sector has been under the microscope of both real estate developers and real estate investors. Although the real estate sector is facing liquid crunch and other problems, owing to the NBFC crisis.
However even if the scenario remains bleak, there are some trends that look to grab the attention of the residential real estate sector. Policy changes in the past few years have led world-class standards to foray into the Indian real estate. The developers are keen on experimenting with design and policies and offer residential and commercial real estate projects which are skilfully built.
Some trends are becoming popular than others and are mentioned below:
Increasing Interest of Millennials in Owning Residential Real Estate:
Young people in their twenties and early thirties are able to afford homes today. They are well-traveled, educated and know a good construction when they see one. Millennials today are more interested in buying a home rather than renting the roof. The percentage of young homebuyers has surpassed the older generation a few years ago and the trend is likely to continue.
The improved conditions of borrowers and workers over the years have pushed this trend up. Bank’s interest rates are at an all-time low. The employment rate is going up, so the increased income and security are what’s driving this behavior.
Many Millenials today are entering into their thirties planning to get married and have kids, further pushing their desire to own residential property.
Today’s generation if more financially literate than the previous one, they look buying a residential real estate as an investment and plan accordingly.
The government of India is pushing the affordable house scheme and this is having a positive impact on the residential property. In recent announcements, the government declared Credit Link Subsidy Scheme (CLSS) on home loans for the Middle Income Group (MIG) under the Pradhan Mantri Awas Yojana (Urban) till the end of March 2020. A homebuyer can avail a subsidy of up to ₹ 2.67 lakh on home loans under this scheme.
This will further push the envelope of residential investment. The affordable housing scheme is witnessing a positive response from both the demand and supply sector. If everything goes well the majority of Indians would have homes by 2025. These kinds of schemes are attracting investments in real estate properties. The increased investments will lower the prices of owning a residential property further boosting the sector.
Demand for Sustainable Designs
With modern consumers getting exposed to world-class standards, demand for highly sustainable designs is on the rise. Customers are looking for luxurious interiors with access to air, natural sunlight, clean air, and other environment-friendly options. The rising awareness of climate change is making developers focus on eco-friendly designs. The sustainable and healthy living tops the list of emerging trends. With increased urbanization, people are looking for something green, even if it’s little something in their own backyard.
Real estate developers are finding ways to embed green initiatives within the building like installing double heightened windows, growing plants on walls and water harvesting. Some real estate developers have made ecological sustainability an integral plan of their development plan.
Increase of Foreign Investments
With the growing economy Indian real estate sector is attracting huge attention from foreign investors. This is a good sign, as receiving foreign investment is a sign that the Indian economy is thriving. The changing market dynamics and globalization has turned the wheels for real estate investors. The opening of FDI has paved the way for investors to receive 50% of foreign investments for their projects. This influx of credit is not only boosting the real estate sector but also the Indian economy.
Delhi remains the top favorite choice for foreign investment in real estate, but the last few years Gurugram, Mumbai, Pune, and Chennai have also gained momentum.
Components of Technology
Generally Indian market is really slow in adopting new technologies, but the real estate sector is adapting new technologies in both design and development. Virtual reality, Automation is slowing to find its way into the residential sector. The paperwork and much other confusing paperwork is been automated already. Advanced technologies have changed the buying behavior of millennials.
New Selling Strategies
Due to the Internet, the buyer today is more informed about the sector even before they meet any real estate developer. The research information beforehand and hence many real estate investors/developers are creating new selling strategies to meet this changing behavior. The need for educating a customer face-to-face has shrunk drastically. Developers are creating exciting offers and marketing strategies to attract buyers in their initial stages of the buying cycle.
The real estate sector is a dominant factor of the Indian economy and these trends indicate a positive future for the residential real estate. The Millennial generation is driving force behind the increased demand for residential properties. Demand for sustainable designs and eco-friendliness will see a rise in the coming years and integrating environment-friendly designs will become the new norm.
Increased foreign investment is strengthening the Indian economy and also the real estate sector. This is also opening some new design and development concepts for local developers.
Adaption of Virtual reality and Artificial intelligence is something we need to look forward to. The Indian real estate market is slowly but steadily adopting global changes.
Real estate developers are creating new marketing strategies to attract new home buyers since the consumer today is more informed about the market via the internet.