Real Estate Market Analysis

Nowadays, because of digitalization, people are becoming aware of different investment options and finding new ways to grow their savings by investing in safer and more sustainable assets. Real estate is the only hard asset that gives investors secure, future-proof, and sustainable investment options.

But before investing in any asset, always conduct a thorough analysis and read a report on real estate to invest efficiently and without any hesitation about appreciation. Today, commercial Noida, the leading RERA-authorised real estate consultancy in Noida, will provide you with a report on real estate forecasts and insights with the appropriate data you need to secure your investment journey.

Recap of 2023

In 2023, when the world was witnessing 3 percent GDP growth, but India was thriving with 6.3 percent GDP growth. Despite the challenges of the pandemic, the unstable economy, and China's strong comeback after the real estate crisis, Indian real estate was booming and flourishing. Let's assess the reasons that helped India achieve this growth.

In 2023, India's unemployment rate was at a six-year low. Because of low unemployment, pandemic savings, and low inflation, Indian people's purchasing power increased, which was reflected in the real estate sector's investment growth.

Moreover, the work-from-home culture peaked during the pandemic, which decreased the demand for commercial space. However, as soon as the pandemic ended and the employees were asked to return to the office, the demand for commercial offices for leasing/renting or purchasing increased drastically. This pushed the real estate sector to reach an all-time high in 2023.

Residential Market Insights

The residential market also saw exceptional growth among the other real estate trends. According to business outlookindia the top eight cities with the highest real estate growth in 2023 were:

There was a 20 percent year-on-year increase in new launches by the end of the year. Property sales surpassed the growth in new supply, registering a 33 percent year-on-year increase during the same period. New supply set the record, trending at an all-time high, while property demand is 90 percent closer to the historic high levels in 2013. This increased demand was influenced by the existing 2021 to 2022 inventory and the need for more spacious homes seen after the pandemic by potential investors. Besides, low unemployment, an increase in the Number of businesses, low inflation, and high purchasing power also influenced this growth.

Rental demand rose sharply in service sector hubs like Gurugram, Bengaluru, Pune, Noida, and Hyderabad. In prime areas across these white-collar cities, monthly rents soared by as much as 25–50 percent compared to 2019 levels, significantly boosting rental yields and thereby attracting investors.

Will 2024 Sustain The Same Real Estate Growth As 2023?

In 2024, there will be elections in the first half of the year, and it can influence market sentiments, but despite that, people are investing drastically in the real estate sector as they have confidence that the current government will retain its position in the center. Because of current government policies and initiatives, India's infrastructural development is rapidly boosted. So, people assume that they will carry this sentiment in the future after retaining their position in the center, which is evident they will. Moreover, people are more inclined towards ready-to-move properties as they want immediate occupancy. These narratives are set to influence 2024 real estate trends.

Developers Will Play A Big Role

India is witnessing new projects daily, but we cannot deny that many projects are delayed because of disputes between developers and real estate registration authorities. Sometimes, developers need to clear their dues to the authorities, and sometimes, projects get delayed because they need money to carry them forward. This is why, this time, investors will only deal well with reputable developers with a good track record. Also, investors are inclined towards projects with fully paid-up land and zero-debt developers, such as Splendor Onyx by Splendor Group and Purvanchal Skyline Vista by Purvanchal Group.

Surge In Demand Of Premium Properties

In the past year, most residential new supply was concentrated in the INR 1–3 crore and above price bracket. While 31 percent of new supply in 2023 catered to this segment, demand for properties in this bracket garnered a notable 24 percent share of sales, skyrocketing from a pre-pandemic average of 10–15 percent. The increased desire for larger spaces within quality projects and a focus on habitability and livability have driven the demand for homes in the higher price bracket. As evident in the 7.5-fold jump in the high-intent online search activity for premium properties in 2023, the coming year will be more pronounced for this segment.

Great Rental Appreciation 

A Growing Number of startups and businesses are also influencing the increased demand for rent/leasing. To accommodate the employees working in those startups and businesses, there will be a huge demand for residential flats for rent in 2024.
 

Move-in magic to drive resale market boom

More people are shifting their accommodation from one city to another for jobs, business, and other purposes, which will also influence this trend.

Conclusion 

The real estate sector in India is ready to witness an exceptional surge in 2024. The sentiment of the previous year will continue this year, too, and the retention of the current government in India will play a major role in its influence. If you want to invest in real estate and get a great deal with good appreciation, contact Commercial Noida to secure your investment in authentic and guaranteed-return real estate projects.