Knowing and predicting the 2024 real estate market holds immense importance for both individuals and businesses involved in the industry.
It is like having a crystal ball that helps you make smarter decisions. For homebuyers, it means understanding if prices are likely to go up or down, helping you time your purchase for the best deal. Investors can use these predictions to figure out which types of properties are likely to be in demand, ensuring a better return on investment. Developers can plan projects that align with future trends, and everyone can prepare for potential challenges.
Here is the Real Estate Predictions for 2024
India’s real estate market in 2024 promises continued growth but at a more moderate pace compared to the sizzling performance of 2023.
Evolution of Homebuying Sentiment
The shift from renting to homeownership witnessed in recent years is expected to persist in 2024. The realization of the importance of owning a home, coupled with the favorable buying environment, will continue to drive a strong homebuying sentiment. This trend aligns with the broader economic recovery and increased stability in the real estate market.
Property Price Projections
Kanika Gupta Shori, Founder and COO of Square Yards, foresees a continued upward trend in property prices, estimating a 10-15% rise in 2024. The escalation in building material costs and a steady increase in housing demand are cited as key drivers. The robust sales witnessed in the past year, despite price hikes, reflect a strong desire for homeownership among prospective buyers.
Shifts in Housing Demand
The demand for affordable housing is expected to remain potent in 2024, driven by a growing enthusiasm for homeownership. Prospective homebuyers, seeking to move away from rental accommodations, are likely to fuel demand for spacious 2BHK and 2BHK+ homes. As the government continues to focus on initiatives promoting affordable housing, developers are likely to explore innovative and cost-effective construction methods to meet the increasing demand from first-time homebuyers. Simultaneously, 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.
City-wise Dynamics
While big cities remain popular, smaller cities are expected to grow more in 2024. Cities like Mumbai, Delhi, Noida, Bangalore, Hyderabad, Gurgaon, and Chennai will see more people wanting homes. As offices in the main business areas reopen and work picks up, young professionals returning to offices will boost the demand for homes near these workplaces. Smaller cities like Sriprumbudur, Ahmedabad, Chandigarh, Indore, Sonipat, Varanasi, and Lucknow are also expected to have more people looking for homes because of better infrastructure and as options for those who want to avoid crowded big cities. Villa plots in Sriperumbudur offer a beautiful and spacious location for building your dream home in a serene environment.
Commercial Real Estate Outlook
The need for business properties is predicted to be as much as or even more than the highest leasing levels seen in 2022. Despite issues like worldwide tensions and rising prices, the first three quarters of 2023 showed a good amount of leasing activity. Flexible workspaces are expected to become more common and make up almost 20% of the demand for office space in the country.
Chennai has absorbed 6.6 million square feet of office space in the first nine months of 2023, surpassing its entire 2022 consumption, according to real estate consultant JLL. It is now considered one of the top 5 office real estate markets in India, after Mumbai, Delhi-NCR, Bengaluru, and Hyderabad. The city has seen a 58% year-on-year increase in office space absorption in the last quarter. Reasons for this rise include a large pool of skilled talent, a thriving economy, robust infrastructure, and far lower rental costs compared to other cities.
Luxury Housing and Emerging Trends
Luxury housing witnessed exceptional growth, with sales soaring by 97% in 2023. The demand for bigger livable spaces post-pandemic drove this trend, and even costly ones from 3-4 crore to 100 crores were in demand. Sharing ownership, especially for vacation homes, became big in 2023.
2024 promises a reimagined landscape of luxury living where technology, wellness, and sustainability take center stage. Knight Frank’s India Luxury Residential Report 2023 forecasts an 8-10% growth in the luxury segment for 2024, fueled by disposable income rise among HNIs and NRIs. Opting for ready-to-build villa plots allows you to begin constructing your dream home immediately, saving time and effort in the planning and preparation stages.
| Platforms like Stanza Living and Fraction are democratizing luxury by offering co-ownership of premium vacation homes and other assets. (Source: The Economic Times: Fractional Ownership Platforms Gaining Traction in India) |
Government Initiatives and Incentives
Prime Minister’s ambitious “Pradhan Mantri Awas Yojana (Urban) – Housing for All Mission”, aims to provide affordable housing to every Indian family. PMAY-G (rural) has been extended until December 2024, with an increased target of 2.95 crore houses.
The scheme’s affordability push is boosting demand and development in smaller cities but also raises concerns about quality and infrastructure bottlenecks. The upcoming budget’s focus on the program further underscores its impact. Ultimately, “Housing for All” is a catalyst for affordability and inclusivity, but its success in 2024 hinges on effective implementation, sustainable financing, and adaptability to a dynamic market.
As per Realty Economic Times, the residential real estate sector exhibited signs of recovery throughout 2023, significantly contributing to India’s growth narrative. Consequently, the industry stands robust, projecting an anticipated surge of 15–25% in new property launches for the year 2024.
Health and Safety as a Priority
In 2024, the real estate market is prioritizing health and safety like never before. This shift isn’t just a fad; it’s a fundamental change in how we perceive and value our living spaces. The events of recent years, from the global pandemic to extreme weather events, have made us acutely aware of the importance of healthy and resilient homes.
45% of homebuyers are willing to pay a premium for homes with features that promote health and well-being. (Source: National Association of Home Builders)
Home Loan Interest Rates
Based on current trends and potential plans, the Reserve Bank of India (RBI) might raise interest rates throughout 2024 to curb inflation. This could translate to higher home loan interest rates. Fixed-rate loans might become more attractive for stability, but compare fees and flexibility before committing.
Wrap-Up
So, when we sum it up, the real estate scene for 2024 looks pretty good, with lots of positive things happening. Even though there might be some changes, the overall strength of the market seems solid.
More people are expected to look for affordable homes, and fancy living spaces are still going to be in demand. People are also interested in living outside the hustle and bustle of big cities.
But it’s not just about homes. Places for businesses and industries are also getting better, with cool features like smart buildings and more efficient warehouses.
The real estate market might go up and down a bit, but it will stay lively and offer great chances for folks wanting a new home or looking to invest.
Explore stunning properties in and around Chennai, encompassing areas like Sriperumbudur, all within Lancor‘s portfolio.