Tuesday, June 25, 2024
Real Estate Guide

Real Estate Investment Trends in India

real estate investment trends in india

Every year we saw a lift up growth in real estate in India. 

If we talk about 2019 was a strong year for the real estate investment trends in India because of profuse milestones like the first REIT launched in March. 

This millennium growth hacking trend continued the rise of exciting new sectors like co-working and managed offices, and consolidation of the market into a more structured, transparent investment space after a transition period in the wake of RERA.

Breaking the limitless, real estate investors leveraged good returns malleable than before and hedge the kind advantages of different securities. 

With all these propelling happenings has greatly increased the magnetism of real estate, the world’s largest asset subject. 

However, the year 2019 was lightened in several fields whether technological, financial, regulatory, or consumer-driven changes all-these lead to promise a positive outlook for real estate. 

Hence, this article highlights real estate investment trends in India that are potentially on ‘driven’ plus five aggressive trends recorded in residential real estate during Covid-19 times

Major Five Real Estate Investment Trends in India

1. SEBI-Regulated Investments:

SEBI coordinated investment development and brought standardization of structure and transparency in real estate capital formation. Early, prior to RERA, the pre-launch sale was seen as an important source of early-stage capital for real estate development.

But, today, SEBI emphasized regulation marked a shift toward regulated investment. Moreover, these regulated investments typically use an AIF Funds and, in some cases, the PMS route which helps in forming a capital in a regulated manner and with transparent reputation. 

Well, this trend is likely expected to see in the coming year too, and may last long in this industry.

2. Managed Offices and Home:

A pre-accommodate working atmosphere place so-called managed offices and homes are the fastest-growing parts of commercial real estate, worldwide. This benefits tenants to focus and carry their business in-a-style while leaving facility management and service headache to a specialist operator. 

In India, the sector is held to achieve 10 million sq. ft. in record time, with more than ten percent market share of total office leasing. On the other hand, the demand for managed offices and homes is incredibly growing and setting a profitable hall of fame. 

And, we expect that this trend has the potential to survive for long-years.

3. Increase in Specialization:

The sectors like real estate, data housing, co-working offices, self-storage, and such others required senior specialization personnel, developers, and staff to pretty much deal with real estate developments.

And due to competition intensify, the further higher specialization will be required to attain as a jack of all trades. While competition increasing on one side, we can expect to see developers specializing in retail, logistics, senior-housing, student-housing, medical offices, and more, on different sides. 

In conclusion, putting the right set of skills at the right time will drive a lot of growth. 

4. International Scale Projects:

Most of the investors and fund-capitalizer consider institutional funding over informal HNI network as this help in quicker capital-raising. The capital collected from one project witness strong growth in real estate development. 

Perhaps, this increases the deal size and ultimately larger the real estate project development (whether commercial, residential, or retail). India’s growing urban cities like Bangalore, Pune, New Delhi, and Hyderabad will benefit from larger-scale projects providing world-class amenities such as sporting and entertainment facilities within the developments and aesthetics, landscaping, vibrant common spaces are the name of few.  

5. Technology-Driven Innovation:

Industries like IT and computer software, technology has had a positive impact on real estate as well. The digital marketplace for real estate investment brings revolutionized advantages and enables investors to profit reliably, safely, and conveniently. 

Technology is also transforming construction, earlier where the job is done manually from planning to execution and monitoring to controlling the project wisely now happening online using technology-driven software that allows complete project management facility at ease. 

These technologies are conventionally proving beneficial in real estate development and thus will remain for long in real estate trends.

Five Emerging Trends Recorded In Residential Real Estate During COVID-19

Trends in Residential Real Estate During COVID-19

While the whole nation sitting in their homes, operate work from home, spending quality time together with families since the journey of lockdown occurred in India from 25th March to 31st June, we have seen many lockdown phrases and the last ended with lockdown 5.0 due to amid coronavirus pandemic. 

And, in many states of India, still, lockdown is aggressively proceeding. Hence, it impacted the millions of businesses and homes, so thus the economy as well, including the real estate. 

However, there lies an opportunity in every crisis, and COVID-19 looks no different. 

In the wake of darkness, the real estate sector is incredibly come up with magnificent and emerging real estate market trends in no time. 

According to the ANAROCK Consumer Sentiment Survey – which is the leading real estate services company in India during Covid-19 times make an attempt to gauge homebuyers’ preference. 

And, that brings lead to emerging of significant trends in the Indian real estate industry. 

#1. Surprisingly this pandemic crisis changed the thinking of millennials. While real estate is firmly the best-in-class for investment and investors. Out of all participants that voted for the same, at least 55% were in the age bracket of 25-35 years and this is about 42% higher against the previous survey or year. 

#2. It was a big question of every business how to close the sale during lockdown times. Perhaps the digital marketplace highly becomes a successful tool. Thus, most of the real estate developers extensively focused on digital sales tools and that results in 82% of buyers booked their homes in that time in these three cities – Bengaluru, Hyderabad, and MMR (Mumbai Metropolitan Region).

#3. A huge kind of aggression in booking homes seen during lockdown phrase due to a sense of security associated with physical assets & lower home loan rates. This happened due to lowering the home loan rates, ranging between 7.15% and 7.08%.

#4. Glance to the last year surveyed, 52% preferred higher-priced home property from reputed developers over smaller ones that sold properties at lowest price and now have recorded 10% jumps (in the figure) during Covid-19 may happen due to taking least execution risk. 

#5. Seeing significant trends in real estate there is one more and that is over 34% of investors now prefer RTM homes (ready-to-move). 

Thanks for reading these emerging real estate market trends. To connect with more real estate guides or latest coverage like this.

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