Predicting The Trajectory Of The 2024 Real Estate Market
Understanding and predicting the trajectory of the 2024 real estate market holds significant importance for individuals and businesses alike. It’s akin to possessing a crystal ball, enabling smarter decision-making. For prospective homebuyers, this insight aids in determining whether prices are poised to ascend or decline, facilitating optimal timing for purchases. Investors can leverage these forecasts to discern which property types are likely to be in demand, ensuring a more favorable return on investment. Developers can strategize projects that align with forthcoming trends, while everyone can brace themselves for potential challenges.
Here’s the Real Estate Predictions for 2024:
India’s real estate market in 2024 is expected to sustain growth, albeit at a more tempered pace compared to the robust performance witnessed in 2023.
Evolution of Homebuying Sentiment:
The ongoing shift from renting to homeownership, observed in recent years, is anticipated to persist in 2024. The recognition of homeownership’s significance, coupled with favorable buying conditions,will continue to bolster a robust homebuying sentiment. This trend dovetails with broader economic recuperation and heightened stability in the real estate sphere.
Property Price Outlook:
Kanika Gupta Shori, Founder and COO of Square Yards, anticipates a continued upward trajectory in property prices, projecting a 10-15% increase in 2024. Factors such as escalating building material costs and sustained growth in housing demand are cited as primary drivers. Despite price hikes, robust sales in the past year underscore a strong inclination towards homeownership among potential buyers.
Housing Demand Trends:
The demand for affordable housing is expected to remain robust in 2024, propelled by a burgeoning enthusiasm for homeownership. Prospective homebuyers, seeking to transition from rental accommodations, are likely to drive demand for spacious 2BHK and 2BHK+ homes. Concurrently, the luxury housing segment is poised for exceptional demand, particularly from High Net Worth Individuals (HNIs) and Non-Resident Indians (NRIs) eyeing sophisticated assets within India.
Urban Dynamics:
While major cities will continue to be popular, smaller cities are expected to experience more growth in 2024. The resurgence of activity in main business areas as offices reopen and work resumes is expected to bolster demand for homes near these workplaces. Additionally, smaller cities are gaining traction due to improved infrastructure and as alternatives for those seeking to evade crowded urban centers.
Commercial Real Estate Forecast:
The demand for business properties is forecasted to match or surpass the peak leasing levels observed in 2022. Despite global tensions and escalating prices, substantial leasing activity was witnessed in the first three quarters of 2023. Flexible workspaces are expected to become more prevalent, comprising almost 20% of the demand for office space in the country.
Luxury Housing and Emerging Trends:
Luxury housing witnessed remarkable growth in 2023, with a surge in sales driven by a preference for larger, livable spaces post-pandemic. The outlook for 2024 anticipates a reimagined landscape ofluxury living, emphasizing technology, wellness, and sustainability. Platforms facilitating co- ownership of premium assets are gaining traction, democratizing luxury offerings.
Government Initiatives and Incentives:
The Prime Minister’s ambitious “Pradhan Mantri Awas Yojana (Urban) – Housing for All Mission”aims to provide affordable housing to every Indian family. The scheme’s affordability push is catalyzing demand and development in smaller cities, albeit raising concerns regarding quality and infrastructure bottlenecks.
Health and Safety as a Priority:
In 2024, the real estate market is prioritizing health and safety to an unprecedented degree,reflecting a fundamental shift in our perception and valuation of living spaces.
Home Loan Interest Rates:
Based on prevailing trends, the Reserve Bank of India (RBI) may raise interest rates throughout 2024 to mitigate inflation, potentially leading to higher home loan interest rates.In summary, the real estate landscape for 2024 appears promising, with numerous positive developments underway. The demand for affordable housing remains strong, while luxury properties continue to be sought after. Additionally, there’s a growing interest in living outside bustling urban centers. The commercial real estate sector is also evolving, with innovations like smart buildings gaining prominence. While fluctuations may occur, the market’s overall robustness ensures ample opportunities for prospective homebuyers and investors alike.