Future of Real Estate in India

Real estate sector is seing a boom in India . Experts predict in 2023-2028 an expected CAGR of over 5% .The demand for high-end residential properties is increasing due to the allure of opulent living spaces, cutting-edge amenities, and prime locations.

a significant transformation is being experienced by India's luxury real estate market .

The competitive pricing in key destinations like Goa, coupled with increasing rental yields make it an attractive option for NRIs seeking long-term investment gains and capital appreciation.

Investing in luxury real estate in India is a strategic move for NRIs to diversify their investment portfolios, as real estate assets provide a hedge against market volatility and offer prestige and long-term value appreciation.

Many investors know the potential of real estate wealth.

KEY TAKEAWAYS

• The most common way to make money in real estate is through appreciation, an increase in the property’s value.
• Location, development, and improvements determine real estate appreciation.
• Real estate investors commonly rely on income from rents for residential and commercial properties.
• Real estate investment trusts (REITs), mortgage-backed securities (MBSs), mortgage investment corporations (MICs), and real estate investment groups (REIGs) are investment alternatives within the real estate sector.

The future of business in real estate is all about embracing the latest change. The real estate industry is experiencing a rapid transformation because of advancements in the fields of innovation and technology. This "PropTech" revolution is reshaping everything from design and construction to property search and management.

Maharashtra tops list of green real estate projects, Uttar Pradesh bags second position

Maharashtra topped the list of green real estate projects (1094 projects) across the country on account of its policy of allowing incentives for sustainable buildings. Uttar Pradesh took the second spot with 643 projects and Gujarat came third with 590 projects. Maharashtra and Telangana led in terms of total million sq ft of space, according to a report by Savills India.

Savills India’s report on Sustainable Real Estate: Strategies and Practices said that there are more than 7000 IGBC-green certified projects across the top 15 states and union territories.

In terms of the total number of green projects, Telangana is ranked fourth with 519 projects, Karnataka with 501 projects is ranked fifth, Tamil Nadu takes the sixth place with 495 green projects and Haryana is ranked seventh with 450 projects. Delhi is ranked 14th with 242 green projects, the report showed.

Maharashtra and Telangana form the top ranked size cluster where the average projects are 0.36 – 0.37 mn sq. ft. whereas Karnataka, Gujarat, and Tamil Nadu can be grouped into the second cluster where the projects are in the range of 0.25 - 0.27 mn sq. ft. Uttar Pradesh and Delhi form the third cluster, characterized by project size to the tune of 0.18 mn sq. ft. West Bengal and Haryana constitute the fourth cluster, with project sizes between 0.12-0.14, the report said.

Credit: Hindustan Times

Dear Nutty, thank you for sharing such useful information with us .

India’s luxury housing sales rise; what is driving premium real estate demand?

Housing sales in India hit an 11-year high of 1.73 lakh units between January and June, according to a report by global real estate consultants Knight Frank. The luxury housing segment contributed around 41 per cent of the real estate sector's sales growth from January to June. Several factors contribute to this growing demand for luxury housing.

A major factor in the increasing demand for luxury homes is the rise of millennials. According to CoreLogic data, 54 per cent of home purchases were made by millennials.

Urbanisation has also increased the sale of luxury homes in Delhi-NCR, Mumbai, Hyderabad, and Pune. Delhi-NCR sold around 3,300 luxury homes in the first half of 2024, a 13.8 per cent increase from the previous year.

The growth of luxury housing has been contributed by high-net-worth individuals, the purchasing power of millennials, and the desire for luxurious lifestyles.

“The Indian luxury homes market has never been this robust. Besides various factors, the increased preference for such homes is driven by enhanced lifestyle aspirations and the desire to live in iconic addresses developed by reputed builders. As incomes have risen, so have expectations,” said Manoj Gaur, Chairman of CREDAI National and CMD of Gaurs Group.

The ultra-wealthy are not just looking for a place to live; they want a luxurious home that also represents a sound investment with a higher ROI,” he added.

According to a report by Cushman and Wakefield, 61 per cent of new residential projects in Q1 2024 were in the luxury segment.

"In recent years, there has been a significant shift towards luxury housing. Coupled with economic growth and infrastructure development, high-net-worth individuals are seeking spacious, comfortable homes with world-class amenities and aspirational values. Delhi-NCR, especially the Noida Expressway, Greater Noida, and Yamuna Expressway regions, have emerged as sought-after locations," said Yash Miglani, MD of Migsun Group. “The demand for luxury homes in India is driven by a combination of factors—rising incomes, lifestyle aspirations, urbanisation, and infrastructural development, such as the construction of Jewar Airport. This is an exciting time for both buyers and investors in the luxury real estate market,” he added.

Credit: Mint

Core assets such as office and residential real estate are likely to mature further and alternative assets such as data centers and senior living will embark upon strong growth trajectories. Market consolidation, fair-pricing and institutionalization will become more pervasive across asset classes, especially in the industrial and warehousing segment, it said.