Property Trends in India in 2023 

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Property trends in India in 2023 : The Indian property market is recovering from a period of stagnation caused by factors such as abolitions, the introduction of Goods and Services Tax (GST) and the COVID-19 pandemic. As the Indian economy continues to recover, demand for real estate is expected to increase, especially in the residential and commercial segments.  

Interestingly, despite many ups and downs in recent years, the real estate market has remained true to the expectations of real estate investors. Encouragingly, positive expectations and growing growth momentum indicate the sustainability of the market and will continue to do so in 2023 and beyond.

Let’s take a look at some of the top real estate trends in 2023 that are expected to dominate the real estate market: 

Shop-cum-Offices in Commercial :  “Shop-cum-offices” (SCO) is a type of commercial property that combines retail and office space within the same building or complex. SCOs are usually found in mixed-use developments that cater to both commercial and residential customers. SCOs offer a range of benefits to business owners, including the convenience of having both retail and office space in the same location, which can help to reduce costs and increase efficiency. This is especially beneficial for small business owners who need to run their operations from a single location . Luckily, the SCO market is experiencing phenomenal growth, doubling the money of early investors. Investors in the SCO market can benefit from longer leases, higher income, and stable cash flow. 

Digitizing apartment hunting : Digital platforms have always existed, but the need for these platforms has doubled across the industry during and after the pandemic. The real estate industry is no exception. In recent months, individuals have been booking their homes through digital platforms. In addition, other factors related to the home-buying process, such as home inspections, brokerage amounts, rental amounts, security deposit amounts, and lease agreements, are also digitized. Additionally, mortgages can now be completed online. This will be the basis for buying and selling real estate projects in 2023.

Sellers Market : The 2023 housing market will be a sellers market. The housing market is expected to see higher prices for the foreseeable future as demand for homes increases while supply is limited. Generation Y will invest in real estate for the first time this year. As a result, the demand for residential and commercial facilities will increase. The future of the Indian property market will be characterised by increasing demand and limited supply, creating a seller’s market. 

Rising house prices : Increased demand and a seller’s market will eventually lead to higher house prices. Homebuyers are aware of rising prices. Interestingly, some buyers are even willing to pay more than the asking price to secure a purchase.

Rental market slows :  Demand to own a home is on the rise after pandemic. People who can afford a house invest in it. This will reduce the demand for rental apartments in major cities. These days, most people prefer owning their own homes to renting them because EMI levels are becoming more equitable. Additionally, increasing affordability for people will slow down the rental market in 2023. As the rental market slows, so does demand for home ownership. The market will also see an increase in younger and first-time homebuyers.

Tier II Cities Become the Residential Market : In 2023, a larger share of investment will move to Tier II and Tier III cities. Certain government programs such as AMRUT and Smart Cities Mission have helped these cities develop into excellent residential centers. Additionally, as job opportunities and economic growth increase, these cities tend to have dense residential populations. Also, some of the Tier II and Tier III cities are home to Indians and global multinationals or are well connected to Indian metropolitan areas. This will move residents to Tier II and Tier III cities for a daily commute. 

Office rental growth  : Demand for office space will increase in 2023, especially in IT and retail. Additionally, e-commerce and external logistics companies are beginning to feel the need to invest in warehousing, making it the fastest growing commercial real estate segment. It also increases investment in data centers.  

Conclusion  

Overall, while the real estate market in India is expected to continue its recovery in 2023, the market could still be influenced by various factors like the economic environment, government policies, and changes in consumer preferences.