Blog Details

Residential Real Estate Trends in 2024: A Dual Outlook on Homeownership and Investment Strategies

Over the past two decades, the Indian real estate sector has endured various economic challenges, including the Global Financial Crisis of 2008 and the recent COVID-19 pandemic.

Despite these hurdles, the industry has consistently demonstrated resilience and growth.

According to a report by Naredco-Knight Frank, the Indian real estate market is poised to expand significantly, with projections indicating a substantial increase to $5.8 trillion by 2047 from $477 billion in the previous year. This growth is expected to contribute over 15 percent to the nation’s total economic output.

In the current year, the residential real estate sector is anticipated to maintain its upward trajectory, buoyed by factors such as escalating land prices motivating potential homeowners to invest, the evolving perception of houses as a crisis-resilient asset, and the emergence of niche segments like student and senior living. These trends, which have been gaining momentum over the past few years, are projected to evolve into micro segments that will contribute to the overall expansion of the sector. This evolution is being driven by the country’s transition from a lower-income to a middle-income economy, resulting in changing preferences among consumers who seek a better lifestyle catering to their evolving needs in work, education, and leisure.

Consequently, premiumization is poised to emerge as a significant trend, with an increasing number of homebuyers opting for luxury properties to elevate their living standards and capitalize on high-return investment opportunities.

Affordability has been a persistent concern for many prospective homebuyers. However, in 2024, the affordability landscape is expected to undergo positive developments, particularly with regard to financing options. Historically low interest rates, which have prevailed for several years, have reignited interest in the residential segment. Home loan rates have decreased significantly, making property investment more financially feasible. Government initiatives such as the Pradhan Mantri Aawas Yojna and staggered payment schemes offered by developers are further enhancing affordability for homebuyers.

Looking ahead, premiumization is poised to dominate the residential real estate market in 2024, with mid-premium, luxury, and ultra-luxury properties defining the sector’s landscape. This trend, coupled with rising land prices, is making property investment increasingly viable and attracting hesitant investors to the sector.

The growing emphasis on smart technologies and sustainability is also shaping the residential real estate market. Homebuyers are increasingly seeking enhanced comfort through technological advancements and sustainable living solutions. Developers are responding to this demand by incorporating features such as app-enabled support services, sustainable amenities, and smart home systems into their projects. These premium offerings cater to evolving consumer preferences and contribute to the overall elevation of the industry’s standards.

Location dynamics play a significant role in the residential real estate market in 2024. Emerging areas such as satellite townships and dedicated economic zones are expanding across major metros, offering unique opportunities for homeowners and investors. These regions, characterized by planned development and improved connectivity, are becoming increasingly attractive for property investment. Homebuyers are advised to consider properties located along metros and expressways in city outskirts to access premium properties at affordable prices.

As for the outlook on price momentum in 2024, both homeownership and rental trends are expected to coexist within the industry. While some homebuyers are purchasing properties for self-stay, others, particularly affluent individuals, are investing in second homes to generate rental income. The anticipated rise in interest rates may prompt prospective homebuyers to expedite their primary house purchases, while second home owners may seize the opportunity to maximize their returns on investment.

Connect with us at Urban Plus for best deals in Gurugram Real Estate.

1 Comments

[…] climbed considerably in January 2024, indicating ongoing solid growth. The strong demand for residential housing, along with an increasing focus on government expenditure, is projected to drive building […]

Leave Your Comment

two × three =

Compare Properties
Add properties to compare.