As we navigate through the recent times, the Indian residential real estate market is emerging as a beacon of security for investors, making the housing market shine for those seeking stability and growth. The Indian real estate market witnessed an unprecedented surge in 2023, surpassing all expectations and setting new records. Buyers are now placing a greater emphasis on owning a home rather than opting for rental arrangements.

It is expected to have a promising 2024 as the months go by and in the ever-evolving landscape of investment opportunities, residential real estate in India stands tall as a pillar of strength and reliability. What is the situation in 2024? All factors indicate that it is a safe investment compared to other asset classes.

The Resilience of Residential Real Estate

Despite the challenges posed by the global crisis in the recent past, India’s residential real estate sector has shown remarkable resilience. Early indicators suggest that 2024 could be a promising year for the industry, with a surge in demand, especially in urban regions with high development and infrastructure trends. India being positioned at the forefront, this growth has been attributed to strong economic indicators and demand consistency, creating a positive sentiment for the key contributors.

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Affordability and Accessibility of Luxury Homes

Indian homebuyers have also turned more aspirational and have a desire to enjoy a luxurious lifestyle. As per a study, residential real estate is set to stay within affordable limits and demonstrate a three-year rise in 2024. With continued urbanization, rental market growth, and despite steady price appreciation, the real estate sector has shown steady growth. The repo rate cut is expected to be within the normal range, resulting in the rate of homes staying longer at an affordable range for buyers. Metro cities like Bangalore would see affordable luxury and people would still be in the bracket of sustained income to purchase homes.

Urbanization and Increased Affordability

The Indian real estate sector is experiencing a significant evolution, largely driven by the rapid growth of the nation’s middle class, along with rapid urbanization which is fuelling the demand for affordable luxury housing in tier-1 cities. This segment forms the bedrock of the real estate market in India and is expected to continue its upward trajectory. The rise in incomes and growing need for homes in urban spaces have led to a great urbanization process, which is the central cause for growth of urban India.

Record-Breaking Performance

The real estate market has been the driving factor behind the Indian growth story. The country was not only the fastest-growing economy, but also saw real estate indicators at record levels. In retrospect, 2023 began with global inflations that threatened to be a full-blown recession. Despite the inflation, the real estate market delivered a strong performance during the year. A strong finish was seen across the cities, with cities like Bengaluru leading the market. These numbers were unimaginable in the past and this indicates a strong expansion-driven growth.

A Flourishing Outlook

As the market is gearing up for a remarkable leap this year, there is a surge in demand across residential properties. It has become evident that there has been significant growth in property markets across India, including an increase in new launches and rise in property sales. Fuelled by the overwhelmingly high sales and a flourishing luxury segment, this provides developers confidence, that will drive a supply pipeline and establish the major metropolitan cities as rapid consumers of real estate. This supports economic growth, a stable interest rate, and a change in the perception of owning property, which results in property ownership being a safety net for financial support.

The Indian real estate sector, central to the economy and supporting numerous industries, is set for sustained growth. Factors like strong GDP growth, urbanisation, increasing incomes, and government initiatives, alongside the rising demand for various types of properties, all point to a bright future. With a promising outlook, it continues to be one of the safest assets for investors to secure in the future.

(By Anjana Sastri, Director-Marketing, Sterling Developers)

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.