A close analysis of the Indian real estate sector made industry watchers expect that 2024 will bring exponential growth. Technological innovation and high-paced growth contributed to the predicted growth of Indian real estate. Similar to last year’s growth, this year is also expected to keep the Indian real estate industry well-occupied. 

The Real Estate Market of India

Certain factors, like regulatory reforms, the liquidity crunch, and the COVID-19 pandemic, have been opposing the Indian economy in recent years. However, the real estate sector of India has demonstrated vital strength and prompt adaptability under these circumstances. In 2023, the market was recovered by favourable government policies, unusually robust demand, and elevated technological advancement throughout the industry.

What Are The Top Trends of 2024 That Will Reshape The Indian Real Estate Landscape?

1. Smart Homes Immersed With Advanced Technologies

This year, say hello to technologically equipped, advanced smart homes offering an upgraded user experience while making living spaces more inspiring for individuals. These tech advancements are reshaping the future of innovative yet affordable living spaces while automating homes by leveraging AI capabilities. These technological adaptations attract homebuyers to invest in more convenient, secure, and relaxing yet affordable housing developments. 

Additionally, Indian real estate acts as a magnet for global investors and homebuyers aspiring for luxurious living amenities and unique user experiences. 2024 foresees an elevated demand for affordable homes, providing luxury amenities while maintaining affordability. The ever-increasing desires of homebuyers for luxurious living spaces and exclusive experiences depict a broader trend in lifestyle and expectations. Middle-class homebuyers and investors target well-connected and opulent residential properties in prime destinations that do not cost them a fortune. 

2. Top 7 Cities To Keep Up Their Growing Pace

The growing pace of India’s top seven Indian cities is considerably derived from homebuyers’ ever-increasing choices for bigger residential spaces. These cities include MMR, Pune, Bengaluru, Delhi-NCR, Chennai, Hyderabad, and Kolkata. This end-user demand pushes residential real estate to develop a favourable environment for sustaining the hiking demand. 

According to a forecast by ICRA, the sales area of the top seven Indian cities is set to increase by 13–15% in FY2024 and by 10–11% in FY2025. This hike is primarily caused by the increasing demand of end-users and stabilised yet decreasing affordability. Moreover, new launches are foreseen to increase by 9–10% in FY2025 after hitting a decadal apex in FY2024, rising 15% YOY. 

With the Indian real estate market’s unprecedented rise, real estate builders are expected to facilitate homebuyers’ shifting demands with spacious, plentiful, and affordable residential units. Moreover, the years ahead are anticipated to witness sustained growth in the residential real estate market segment in these top seven Indian cities. It calls for real estate developers and investors to maximize this momentum by aligning with evolving homebuyer preferences and market dynamics.

3. Expected Fresh Launches In The Residential Real Estate Sector

General Elections are scheduled for early 2024, which usually impact the mood and policies governing the residential real estate sector. However, this political event couldn’t obstruct the sector’s boost from keeping pace with its growing momentum and launching new projects. Factors like labour costs and raw material availability hugely impact the supply of residential property. With an interim budget allocated for elections, no significant surprises will await the real estate industry by mid-2024.

Despite this political backdrop, robust residential buyer demand predicts the residential market will keep afloat with the next wave of growth and expansion. Several reputable real estate developers have declared new project launches to mark their entry into the booming market. This supply pipeline further promotes a strong demand for residential living space investments in the year ahead. A significant number of launches in the residential segment are expected in 2024, totalling 280,000 to 290,000 housing units. 

4. Escalating Demand For Commercial Real-Estate Sector

In 2024, industry experts predict a demand that will continue to boost the commercial real estate sector and the flourishing innovative office market. This year, consolidation is envisioned to be stable, mirroring India’s steadily developing office sector. The market alternatives will continue to realign according to the changing needs of the occupiers. Moreover, the robust economic development potential in India will sustain the confidence of the occupiers and developers.  

The balance between demand and supply would provide feasible vacancy levels by offering prospective rental increases. The industrial and warehousing industries are driven forward by increasing capital investments, manufacturing output, and stimulating government policies. Monitored using AI and IoT, intelligent and automated warehouses will redefine the future of these sectors.

Industry experts anticipate that the flex segment will exceed the 1.45 lac level in 2023 and will lease more than 1.5 lac seats. More and more occupier strategies are incorporating flex demand, which is associated with happier workers.

5. Skyrocketing Demand For Luxury Living Spaces

The extravagant real estate segment, particularly luxury residential apartments, seems untouched by shifting interest rates or market volatility. Despite their ever-evolving buying practices, luxury property buyers are also experiencing slight shifts in their purchasing behaviours. Regardless, this year will likely observe a worthwhile hike in luxury sales relative to total residential market sales.

The premium residential projects launched by reputable developers are expected to leverage technology to provide individual services, enhancing comfort levels. To deliver an upgraded living environment, they’ll use AI and chatbots to provide virtual concierge services, biometric authentication, and improved security. Moreover, the demand for holiday properties, second homes, and planned communities is predicted to grow in 2024. Leisurely desires, opulent lifestyle needs, and heterogeneous investments strongly drive the appeal of owning a second home.

With the rapid evolution of the Indian real estate sector, stakeholders must, however, keep up with the modifications in market dynamics and preferences among buyers. Being innovative, environmentally friendly, and digitalized will be among the driving forces to survive and respond to shifting consumers’ requirements. Through monitoring trends and utilising technology and partnerships, the Indian real estate industry is in a position to navigate the changing landscape of the 2024 period with confidence.