Investing in the Indian real estate market is like finding a really cool treasure for your money. Not only does it offer trustworthy chances to invest, but it also promises to give you back some great rewards. Let's dig into what makes the Indian Real Estate Market a smart choice.
When thinking about where to put your money, experts say that the stock market is the top pick compared to other options like gold, mutual funds, or cryptocurrency. But, before you dive in, it's a good idea to do your own research specifically on the Indian real estate market.
Even though the real estate market has faced some challenges lately, experts believe that it will see new and exciting changes in the upcoming years. The need for homes is going up, so jumping into investing and handling land registrations seems like a pretty safe move that can pay off really well in the future.
The Shift to Suburbs: A Change in Living Choices
More and more people who can work from home are choosing to live in the suburbs. Why? Well, it's because they can get bigger houses and enjoy a better life without spending too much money. Working from home (WFH) has become more important than the old idea of living close to where you work.
The latest results from the Anarock Consumer Sentiment Survey support this idea. It found that 43% of people would rather move to the suburbs to get a bigger home.
Right now, only 28% of people are looking for homes right in the city, near where they work. Because so many people want to move to the suburbs, companies are rushing to make more houses.
People who already had land in the suburbs or other places saw this as a great time to start building there. The data says that a big chunk, as much as 58%, of the 1.49 lakh homes launched in FY21 is on the outskirts of the top seven cities. This percentage was 53% in FY2020. Also, in the Indian real estate market, everyone is saying, "bigger is better" after the pandemic.
Looking at the numbers, the size of apartments in the seven biggest U.S. cities is going up. In 2019, they were around 1,050 square feet, in 2020 they increased to 1,120 square feet, and by the third quarter of 2021, they were up to about 1,200 square feet.
Millennials Take the Reins
Due to uncertainties in the economy, unpredictable stock market movements, and recent financial events, millennials are now the driving force in the market. Instead of renting, many of them choose to buy homes. The COVID-19 pandemic has further fueled this desire, as people seek the security that comes with homeownership.
Despite facing various challenges, millennials consistently prioritize owning a home. More than half of the survey participants were under 35 years old, with almost half falling between 25 and 35 years old. Real estate emerges as the preferred investment choice, highlighting its popularity among the younger generation.
In 2019, only 20% of respondents shared this sentiment, indicating a significant shift. Millennials have taken over from Generation X as the primary homebuyers, and this trend is expected to continue in the foreseeable future.
Anticipated Rise in Expenses
Construction essentials like cement, steel, and workforce are all getting pricier, going up by a big chunk in percentages. Even a small increase of five to ten percent in overall costs seems like a pretty sure thing.
Some builders have already bumped up their prices, and others are likely to follow suit soon. But, there's a reason behind it—many builders have had to spend more lately. They've been making sure their on-site workers stay safe by covering the expenses for things like vaccines and other health needs.
What's more, lots of builders saw all their homes sold in the past year, thanks to deals and discounts during the housing boom caused by the pandemic. This puts them in a good position to raise prices. In the third quarter of 2021, there was a 1% growth.
This growth happened because building stuff got more expensive, and those increased costs got passed on to the people buying the homes. So, considering the really low home loan rates available now, along with builder offers and discounts, if you've been thinking about getting a home, now might be the time to do it.
Importance of Health and Fitness Places
Did you know that seventy-two percent of people in a recent survey think having a specific walking trail is really important or somewhat influential? On the other hand, sixty-five percent like having open green spaces. Since most swimming pools are closed during lockdowns to stay safe, they aren't a top priority.
Combining Work and Living Spaces
With more people working from home now, lots of builders in India are thinking about adding places to work in their housing projects.
They can change existing clubhouses into places to work, and when making new neighborhoods, they can plan for these work areas right from the beginning. Changing things up a bit is usually needed, especially in buildings made for big community gatherings.
Rising Need for Jobs Due to Growth in Indian Real Estate Market
The number of workplaces people are looking for has gone up because of positive changes in India's real estate market. More and more people are getting vaccinated, and the low number of infections is helping businesses flourish. Additionally, the use of digital technologies has significantly changed how businesses serve their customers.
Especially in the real estate industry, these new ways of doing things are being welcomed. They are being used to increase how much work can be done, make things more stable, and ensure that businesses can keep going without interruptions.
Experts predict that this positive trend will continue into 2021. In the third quarter of 2021, the amount of office space being leased reached 13.5 million square feet. At the same time, the number of homes sold went up by almost 46% compared to the previous quarter, reaching 50,000 units. Year-over-year, there was an impressive 86% increase.
The Return of Renting
The Model Tenancy Act is a crucial factor that is expected to create a higher demand for rental housing. This act is designed to set standards and formalize the renting industry. It aims to attract investments, transforming empty rental units into profitable assets. Additionally, the act will establish a specialized and faster way to resolve disputes. This will help fix issues in relationships between landlords and tenants, rebuilding trust.
Conclusion
Property prices in India are going up like never before. This can be good or tricky for people wanting to buy a house. There's a bit of a problem because the number of houses available doesn't match the number of people wanting to buy. Homes that are already good to go are likely to cost more. Even with all the unsure things happening, investing in real estate can be a smart move for the long haul. To make the right choices, people looking to buy a house should keep themselves updated, keep an eye on what's happening in the market, and think about how prices might go up or down.