Top Real Estate Trends in India for 2024

The Indian real estate market is expected to continue to remain resilient and promising as we inch closer towards 2024 from the backdrop of the growth momentum witnessed last year. India’s property sector has proven its resilience through changing market situations and the increasing number of new property launches, as well as home purchasing. Positive economic signs, improved employment numbers and stronger demand across the segments are going to be drawing a broad swath of buyers into the industry this year, from first-time buyers all the way to grizzled real estate veterans.

Given all the above factors there are certain real estate trends that expected to take place in India during 2024.

The Rise of Shop-cum-Offices (SCOs) in Commercial Real Estate

SCOs are one of the latest and most fascinating trends in Indian commercial properties. SCOs, which are highly popular in Gurugram and other part of the National Capital Region(NCR), provide an attractive mix of commercial spaces at affordable prices for small businesses, retailers & start-ups. With long leases, predictable cash flow and high resale values, particularly in hot markets, SCOs are a lucrative investment. SCOs have been a hot favourite amongst investors and already realised massive capital appreciation on their plots, making it the best investment option for those looking to invest in the commercial sector.

House Hunting Goes Digital

From the pandemic-induced acceleration of real estate digital transformation, the trend is here to stay. Buyers and sellers have begun digitising transactions, from virtual property tours to remote signing of lease agreements. CHEN: So, today the entire process has been systemized by digital tools— home searches, virtual staging, internet bookings and even mortgage approvals. As online home loan applications and digital transactions are increasingly common, the reliance of property buyers on technology will increase in 2024. This enhances the accessibility of purchasing as well as empowering investors to make fair choices in a more timely fashion.

Continued Market Dominance by Sellers

2024 Will Be A Sellers Market Climate, Due To Increased Demand With Little Inventory Millennials, or Generation Y, are now starting to enter the real estate market and this alone is driving up quite a bit of demand because they have delayed purchasing homes for various reasons and many who can afford it are finally investing in property. The shortage of supply in the face of such high demand means prices will almost certainly increase, therefore it is a good time for sellers. The competition could be intense for homebuyers, many of whom will pay over the asking price to obtain the properties they want.

Increasing House Sale Prices In Indian States

This demand-supply mismatch will result in a rise of property prices on cities and developed areas for sure. Buyers are starting to catch onto the price increase with some keen to secure properties before prices jump even higher. This is fueled by the increasing young professionals and middle class of India, who see real estate as a way to ensure their future. 2024 will also see price appreciation with homebuyers paying for the convenience of developing homes with premium amenities from luxury properties.

More Money As Interest Rates are Likely to Go Up

With inflation and global economic conditions continuing to put upwards pressure on interest rates, we can expect lending rates to rise throughout 2024 after a prolonged period of low-interest-rates. That would apply to both mortgages and home loans, which can increase the expense of borrowing. Still, increases in interest rates may not subdue demand much as buyers pin their hopes on real estate being a good investment over the long haul. That said, buyers still should factor in a touch of higher monthly mortgage payments when making a budget.

Prime Residential Markets Emerge Outside the Traditional Tier-I Cities

Reforms such as the AMRUT scheme by the government and Smart Cities Mission has made these tier-II and tier-III cities, a viable residential market. But now, in addition to major businesses and manufacturing hubs, cities like Jaipur, Kochi and Indore are also cheaper property markets compared to metro cities. The demand is shifting towards cities that provide more quality living at lower prices thanks to better infrastructure, connectivity to the metro and upcoming business opportunities among others, making tier-II cities even more attractive for investors and end-users.

Slowdown in the Rental Market

A big change that we are seeing since the pandemic is a results an increasing preference for homeownership over renting. Rising parity of rent and monthly EMIs is helping buyers choose buy over renting resulting in a cooling demand for rental properties, particularly in big cities. While rising rents and modest vacancies hinder the rental market, it positions well for first-time buyers and millennials willing to forego quick income from rental scale − but that need security through long-term investment.

IT and Warehouse Gets Higher Demand for Office Leasing

Further, with the IT sector recovering and a growing demand for warehousing from e-commerce and third-party logistics players, commercial real estate is bouncing back. The growing popularity of online shopping has made warehousing spaces a necessity, driving this segment into reality. And just like organisations are growing or waking up, all of these new corporations want facts centers and things. Such growing demand foreshadows a bright 2024 for commercial real estate investments.

Sustainability and Green Building Practices

Sustainable and Eco-Friendly Practices The trends in Indian real estate are also being influenced by the growing awareness of sustainability and eco-friendly practices. There has also been growing demand for green buildings which include rainwater harvesting, energy efficiency and solar power design. While it is estimated that the carbon footprint of buildings will be attributed to property development, developers are transitioning towards sustainability not only to reduce their impact but also into meeting the desires of a much more environmentally minded generation. Sustainability will obviously play a big role in many projects we can expect to see over the coming years, especially as more and more local markets experience high levels of deman

Summing Up

The year 2024 could bring a holistic combination of opportunities and challenges, as India’s real estate sector matures out with the help of better regulations. The time ahead seems promising for both investors and homebuyers with inflation, digital transformations, and prospects of tier-II cities. Even though it is a sellers' market, the tier-II cities have a lot of affordable options resulting in high availability for every pocket.

SCOs and commercial leasing offer high-growth potential for those seeking steady returns, while homebuyers will be able to buy properties with the help of digital tools as a means of convenience. The fundamentals of the Indian real estate market are solid, demand is expected to be high going forward and therefore it remains an area that can provide value for money across all segments to investors.