2023 was a stupendous year for Indian realty as the sector recorded a hefty 2.5 billion dollars worth of investments. And it’s only getting better. By 2030, the Indian real estate sector is slated to register the coveted ‘one trillion dollar’ mark. Having emerged as the proverbial juggernaut this year, the country’s real estate industry continues to gallop at a tremendous pace. It has fast cemented its position as the largest and most lucrative sector for investors.

However, this significantly upward motion can be assigned to a myriad of factors. These include sizable NRI investments, strategic policy changes, and impressive capital appreciation. As we focus on the dynamic fabric of the real estate market (replete with its inherent fluctuations and shifts), we find that the upcoming year will raise the progress bar even higher, setting the grounds for further growth.

NRI Investments: Global Capital Meets Local Opportunities

The steady influx of investments from non-resident Indians stationed access the globe is one of the major factors behind the real estate boom witnessed in 2023. With a renewed interest in their homeland, NRIs are increasingly considering real estate as a secure and high-return investment option. The seamless integration of technology, combined with a transparent regulatory framework, has simplified the process for NRIs to navigate the real estate market remotely. This has, undoubtedly, offshooted a considerable rise in investments.

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Policy Changes: Paving the Way for a Robust Market

The real estate landscape witnessed a paradigm shift in 2023, thanks to strategic policy changes that have fostered a more conducive environment for both investors and developers. Governments around the globe have introduced measures to expedite approval processes, minimize bureaucratic obstacles, and promote sustainable development. These policy adjustments have increased investor confidence and triggered a wave of new real estate projects.

Capital Appreciation: The Driving Force

The robust capital appreciation observed in 2023 has been a key driver behind the real estate sector’s ascendancy. Property values have soared, providing investors with handsome returns and reinforcing the notion that real estate is a resilient and rewarding asset class. As traditional investment avenues face volatility, real estate stands out as a stable and appreciating asset, attracting a diverse range of investors.

Residential Housing: A Dynamic Landscape

In 2023, the residential real estate sector witnessed a dynamic transformation, with two key segments gaining prominence — luxury real estate and affordable housing. The demand for luxury properties surged as high-net-worth individuals sought exclusive and opulent living spaces. Simultaneously, the continuous demand for affordable housing remained a driving force, spurred by government initiatives and the realization that real estate is not just an investment but also a basic necessity.

The Rise of Luxury Real Estate

Luxury real estate, characterized by exquisite architecture, premium amenities, and prime locations, experienced unprecedented growth in 2023. As global economic conditions improved, high-net-worth individuals displayed an increased appetite for luxury properties. This surge in demand has not only elevated the status of luxury real estate but has also contributed significantly to the overall growth of the real estate sector.

Continuous Demand for Affordable Housing

Contrary to the perception that real estate is only for the elite, the affordable housing segment has continued to thrive. Government initiatives, coupled with developers focusing on creating budget-friendly housing options, have made homeownership more accessible to a larger demographic. The sustained demand for affordable housing is not only a testament to the sector’s inclusivity but also a driving force for its continued growth in the coming years.

Looking Ahead to 2024: A Promising Future

As we welcome the advent of the new year, it is clear that the real estate sector is set to record sky-high growth numbers in 2024. The strategic coming-together of multiple desirable factors such as NRI investments, strategic policy changes, and capital appreciation has paved the road for a high-momentum sustained growth. The residential housing segment, factored by the emergence of luxury real estate and the relentless demand for affordable housing, will assay a critical part pivotal role in moulding the real estate landscape in the years to come. Investors, both domestic and international, are increasingly recognizing real estate as a dynamic and resilient investment option, ensuring that the sector remains at the forefront of the global investment arena.

(By Vikas Wadhawan, Group CFO, Housing.com & PropTiger.com)

Disclaimer: Views and facts expressed above are those of the author. They do not necessarily reflect the views of financialexpress.com. Readers are advised to consult their financial planner before making any investment.