Tag Archives: India’s real estate market

What factors will dominate India’s real estate market in 2024?

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The interplay of shifting consumer preferences, governmental regulations, and market dynamics will result in an active real estate market in 2024. 

In recent years, there has been notable growth in the Indian real estate sector. Almost all of the records from the previous year were shattered in the first quarter of 2024; the year 2023 saw the most new projects announced in a decade. According to a report, the residential real estate market anticipates a significant influx of new launches in 2024, with an estimated range of 280,000 – 290,000 units. This has paved the way for a successful 2024, demonstrating that the industry is not only expanding but also showing signs of continued expansion in the years to come.

Will 2024 see the market’s drivers?

India’s real estate industry has long been one of the main forces behind economic expansion, contributing significantly to the GDP. The industry has proven resilient and adaptable in the face of challenges in recent years, including COVID-19, regulatory changes, and liquidity crunch. A gradual recovery in the market was observed in 2023, driven by favorable government policies, pent-up demand, and a rise in the industry’s adoption of digital technology. According to former Housing and Urban Affairs Minister Hardeep Singh Puri, the Indian real estate market is projected to grow to a $1 trillion sector by 2030 and contribute roughly 15% of the country’s GDP by 2025.

The Indian real estate market is viewed as a worldwide investment opportunity in addition to meeting local demand. Particularly NRIs are actively involved in the market as a means of maintaining ties to their homeland in addition to acting as investors. About 10% of all market investments as of the 2019-2020 fiscal year were made by non-resident individuals (NRIs). By the end of 2025, this percentage is expected to have increased to 20% from its current level of 15%. This is a blatant sign of the market’s popularity across borders and the confidence the NRI community has placed in it.

The Indian real estate industry’s upward trend is evidence of its resilience rather than the product of chance. This sector has maintained a consistent increase in rental yield despite the ongoing devaluation of the Indian rupee and the difficulties presented by the state of the world economy. This has fueled the sector’s growth, providing confidence in its stability and potential for further expansion, supportive economic policies, and an emotional bond with the nation of origin.

Consumer  Behavior and Market Structure 

The Luxurious Living Trend 

India’s growing economy has made it more desirable for those with more disposable income to live lavish lives. The populace also looks for homes with extra features like swimming pools, fitness centers, and lovely gardens. Upper-middle-class individuals also want larger living spaces with more money, besides HNIs and UHNIs.

Considering the Environment

The building of sustainable structures has seen a significant shift in the Indian real estate market during the past two years. The real estate industry is improving living standards by employing environmentally friendly building materials, water conservation and management techniques, and energy-efficient building designs. Customers are looking for houses that align with their values and views. Homes with rainwater collection systems, renewable energy systems, and energy-efficient appliances are sought after by today’s buyers, especially those belonging to Generation Y.

Naturally occurring light and air are also permitted in sustainable homes, creating an impression of greater room and fresh air. This improves moods and lowers stress levels, which boosts productivity— especially for those who work from home. Although building green real estate costs a little more than building traditional homes, people can save a significant amount of money on their bills over time, making it an excellent investment.

Housing Preferences

Due to a lack of Ready-to-move-In (RTMI) inventory and price increases in gated communities, buyers are gravitating toward individual homes, resale properties, and under-construction projects. Resale properties are in high demand because they offer a good living space without the wait or the high cost of interiors. Price should increase significantly for houses that have been completed or are under construction. 

Investment Shifts 

Commercial real estate has historically been favored for investment because of its higher returns and lower maintenance requirements. On the other hand, a significant increase in residential property rental yield during the past two years, combined with their affordability, has shifted the odds in their favor. There is a general expectation that residential properties will capitalize more quickly than their commercial counterparts due to the quick price rise.

Technology Use 

The real estate market is rapidly changing due to technology, which makes it easier and more efficient for people to access and invest in properties. The ease with which one can now access market data, view properties through virtual tours, and buy or sell a home with a single click is revolutionizing the home-hunting experience. People can find reasonably priced homes outside their offices and reduce their commute time using metro-based filters on Proptech platforms. The convenience and effectiveness of the real estate process are being improved by the gradual transformation of Internet channels into a one-stop shop for all services related to the market.

Modern buyers want a home that easily incorporates technology to improve their quality of life, not just any old house. The demand for smart homes is changing the real estate market. Examples include automated lighting and climate control, voice-activated assistants, smart security systems, and elevators with predictive maintenance services. The use of smart home technology has made a significant impact on buyer preferences and purchase decisions by differentiating properties on the market.

In conclusion, there has been a noticeable uptick in building activity since COVID-19, which has given the real estate market a fresh impetus. Home prices in India will keep rising to provide a stable future for the middle-class population who aspires to a luxurious lifestyle. The market is ready for a recalibration and stability in real estate prices as projects see an uptick and new launches get closer to completion. 2024 is not only a promising year for homeownership, but it also presents a wealth of opportunities due to the convergence of market dynamics, government initiatives, and changing homebuyer preferences. 

The top three places in North Goa to rent for a lot of money

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North Goa may be the best option if you want to invest in real estate in Goa and make significant profits. The area is an investment-friendly destination because it attracts large numbers of tourists year-round and because properties such as villas, staycation apartments, and homestays are in high demand. So let us investigate the top three places in North Goa with the highest potential rental income.  

One of Goa’s two districts, North Goa, is a well-liked tourist destination with plenty of space for sizable rental incomes. Mopa Airport and other infrastructure upgrades will help Goa develop. The region’s housing demand has been further positively impacted by the influx of industries and the start-up culture, providing investors with profitable opportunities.

Many localities rank highly in the liveability category, drawing in both end users and tenants with a wide range of property options available at competitive pricing. Let us find the most affordable places to rent in Goa.

North Goa’s best neighborhoods for the highest rental income

North Goa has a huge upside and nearly no downside regarding its rental income earning potential. Why do we say that? Go on to find out the response. 

Calangute, North Goa 

Calangute is a popular vacation spot, primarily because of Calangute Beach and other attractions like Aguada Fort. Due to this, there is a demand for vacation rentals and staycation apartments, which creates an opportunity to profit from investments through short-term rental income.

Calangute is one of the best places in North Goa for high rental income because of its closeness to business centers, which attracts long-term tenants like working professionals. Within a 5-kilometer radius are several industries, such as Maruti Industries, Steelmac, and Deepra.

Although the majority of the properties in Calangute are 1- and 2-bedroom apartments, the area also has residential lands, villas, and independent builder floors. The price range for a 1-BHK apartment is approximately Rs 41 lakh to Rs 1 crore, while a 2-BHK apartment may cost between Rs 82 lakh and Rs 1.5 crore. 

The average property price in Calangute is Rs 10,000 per sqft. And the rental rate is Rs 14,000-16,000. 

Real estate developers like Saldanha Developers Pvt. Ltd. and Pink Zebra Real Estate have chosen to establish their presence in North Goa due to the ongoing demand for real estate.

The social amenities that Calangute in North Goa provides also contribute to its livability. Popular hotels, shopping centers, and schools in around the area include: 

  • Educational Institutions: Green Meadows School and Narsaraopeta Engineering College are three kilometers away. 
  • Shopping centers: Valanka Shopping Mall and Calangute Beach Road Mall are nearby.
  • Hotels: Nearby hotels are Candolim Grande Resort and Hyatt Centric.
  • Hospitals and clinics: Yashraj and Bosio are two kilometers away.
  • Attractions for tourists: Aurelio Pinto, Memorial Park, and Candolim Park are among the parks in the area; Calangute Beach, Baga Beach, and Aguada Fort are 7 km from the center.

Mapusa, North Goa

It is easy to commute in about 30 to 40 minutes because the industrial areas of Verna and Kundaim are 35 km away from the location via NH-66. Due to this, Mapusa has become a popular place for working professionals to live, which may be the main reason for the high demand for rentals in this area.

Mapusa is a posh housing town with 2-BHK homes starting at Rs 46 lakhs; monthly rentals range from Rs 22,000 to Rs 26,000. The location also offers 1 and 3 BHK apartments, with prices ranging from Rs 36 lakh to Rs 44 lakh and Rs 65 lakh to Rs 3 crore, respectively, in addition to the 2-BHK units.

Furthermore, Mapusa is among the greatest places to get the most rental income because of the abundance of amenities and flawless connectivity. Here are some of its main points, in brief: 

  • Simple Connectivity: Calangute-Mapusa Road, Mapusa-Moira-Aldona Road, and National Highway (NH) 66 provide interstate and city connectivity, respectively. 
  • Easy Travel: NH-66 connects Thivim Railway Station, Mapusa Bus Stand, and Goa  International Airport, which are nine, four, and 37 Kilometers away, respectively. 
  • Educational institutions: Kupwara Public School, St. Mary, and St. Anthony, all within 4-6 km.
  • Hospitals in the area include Holy Cross General, Kenkre, North Goa District, and Ankur. 

Porvorim, North Goa

Porvorim provides easy access between Maharashtra and Goa and is located on the Mumbai-Goa highway (NH-66). Within a 10-kilometer radius are Pilerne Industrial Estate, Colvale Industrial Estate, and Goa Industrial Development Corporation, providing working professionals with easy access to employment opportunities and convenient commuting.

Its convenient location and abundance of business centers make it a valuable asset with excellent return on investment (ROI). The fact that this town is home to well-known developers like Syndicate Buildcon, Mohan Group, and Mehta Developers speaks volumes about the potential of residential properties and the rental incomes they can generate.

Residential apartments in Porvorim, North Goa, come with 1-2 and 3 bedroom layouts that start at Rs 38 lakh, Rs 70 lakhs, and Rs 1.19 crore, respectively.

The following facilities make it even more appealing as one of the greatest places in Goa to rent for the most money. 

  • Road connectivity: NH-66 provides interstate access to Maharashtra, while the Panvel-Kochi-Kanyakumari Highway connects Kerala with Maharashtra. 
  • Rail connectivity: The Karmali Railway Station, which is 17 km from the location, provides inter-city and inter-state rail connectivity to the Indian Railways.
  • Holy Family Primary School, Blooming Bud, and Shiksha Niketan School are the schools. 
  • Colleges: Ann Institute of Hotel Management and Vidya Prabodhini College. Mandovi Hospital, Holy Cross General Remaso Hospital, and Chodankar Hospital.
  • Aguda Fort, Candolim Beach, and Pilerene Sunset View Point are well-liked tourist spots. 

It is among the greatest options for investors seeking a high return on investment (ROI) because of all these factors.

The positive aspects of the region that the residents have praised are the lifestyle, environment, safety, and connectivity.

In summary, North Goa’s Calangute, Mapusa, and Porvorim are some of the best places to find high rental incomes. Ensuring the same requires the provision of social amenities, ease of connectivity, and proximity to commercial hubs.

These locations also welcome tourists throughout the entire year. Investors can thus profit from both short-and long-term rental income. You should still speak with a licensed property consultant and conduct in-depth research to make the safest and best-informed decisions. 

The Dwarka Expressway is driving the real estate revival in Gurgaon

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With the Dwarka Expressway, businesses, residents, and investors stand to gain much from the promise of better accessibility and enhanced connectivity. 

Gurgaon’s real estate market has experienced a surge in activity due to the Dwarka Expressway, drawing interest from investors and homebuyers. In the history of Gurgaon’s development, this corridor marks a critical turning point that will transform the city’s skyline and spur economic growth. In addition to increasing property values, the expressway has spurred economic activity nearby and electrified infrastructure to expand. Gurgaon is currently a leader in India’s growing real estate market, drawing interest from domestic and international markets. The Dwarka Expressway is creating a lot of talk, highlighting how important it will be in deciding Gurgaon’s status as a vibrant and future metropolis. 

The real estate market in Gurgaon is experiencing a notable upswing, primarily due to improved connectivity between Delhi and Gurgaon. Maintaining the growth pace relies heavily on the central peripheral road, which is essential between the Dwarka Expressway and Sohna Road via the Southern Peripheral Road (SPR). The recent opening of the Dwarka Expressway’s Haryana segment by Prime Minister Narendra Modi is expected to improve traffic flow and reduce congestion between Delhi and Gurgaon. Experts in real estate note that the Dwarka Expressway in Gurgaon is growing in popularity as a residential area and predict the construction of opulent residential complexes shortly. Furthermore, a rise in housing prices is inevitable due to the expressway’s operationalization, as this will reflect its increased accessibility and desirability. 

The Dwarka Expressway Gurgaon corridor has become a popular residential area, attracting buyers with its varied housing options and better infrastructure. Reputable builders have contributed to this boom by starting several projects nearby, enhancing Gurgaon’s standing as a top destination for real estate investment. 

Over the last ten years, the area has witnessed the arrival of about 53,000 new housing units, of which more than 80 percent have already been snatched up by eager buyers, according to data from real estate consultancy Anarock. The primary residential market along the Dwarka Expressway has experienced a surge in average property rates due to strong demand. As of the end of 2013, the rates have risen from Rs 4,530 per square foot to Rs 8,300. This demonstrates the corridor’s appeal and bright future for successful real estate endeavors. 

The Dwarka Expressway passes through several important Gurgaon sectors, including 81 to 115. Its catchment area includes sectors 36A, 36B, 37D, 88B, 99, 102, 103, 104, 106, 107, 108, and 109. It is noteworthy for having connections to the Delhi Mumbai Expressway, Manesar Road, and Pataudi Road. With the completion of the Haryana section of the expressway, developers are hopeful that their recent investments will finally pay off. This corridor is said to have delivered about 150 residential projects, and more high-end projects are expected to be launched soon. The opening of this crucial road infrastructure is expected to have a major effect on neighboring Delhi, especially on the residential zones in different villages, as well as revitalize areas within Gurgaon. 

The Dwarka Expressway may also be of major benefit to the economy, directing the development of Gurgaon. Its revolutionary effects on the real estate industry and the broader economy highlight the significance of infrastructure in prompting growth and prosperity. Gurgaon is positioned to become a model for sustainable urban development and economic prosperity in India due to the expressway’s opening up new investment and connectivity opportunities. 

Wide-ranging effects include increased economic activity, job creation, and improved liveability for the region, expected from this infrastructure project. With the Dwarka Expressway, businesses, residents, and investors stand to gain much from the promise of better accessibility and enhanced connectivity. Gurgaon is well-positioned to demonstrate its potential as a dynamic and vibrant economic hub that will propel innovation, growth, and prosperity for years as it embarks on this path of significant change. 

Why is residential real estate considered one of India’s safest investments?

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The Indian real estate market experienced an unprecedented surge in 2023, outperforming all expectations and setting new records. Buyers are increasingly prioritizing homeownership over rental arrangements. 

As we navigate recent times, the Indian residential real estate market has emerged as a beacon of security for investors, allowing the housing market to shine for those seeking stability and growth. In 2023, the Indian real estate market experienced an unprecedented surge, far exceeding expectations and setting new records. Buyers are increasingly prioritizing homeownership over rental arrangements. 

It is expected to have a  promising 2024 as the month progresses, and in India’s ever-changing investment landscape, residential real estate stands out as a pillar of strength and dependability. What is the situation in 2024? As we navigate through 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. 

Residential real estate is resilient 

Despite the challenges posed by the global financial crisis in recent years, India’s residential real estate sector has proven remarkably resilient. Early indications suggest that 2024 will be a promising year for the industry, with increased demand, particularly in urban areas with high development and infrastructure trends. India is positioned at the forefront, and this growth has been attributed to strong economic indicators and consistent demand, creating a positive sentiment among key contributors. 

Affordability and Availability of Luxury Homes 

Indian homebuyers have become more aspirational, seeking to live a luxurious lifestyle. According to a study, residential real estate will remain affordable while increasing threefold by 2024. The real estate sector has grown steadily due to continued urbanization, rental market expansion, and price appreciation. The repo rate cut is expected to be within the normal range, allowing home prices to remain affordable for buyers for an extended period. Metro cities like Bangalore would see affordable luxury, while people could purchase homes regularly. 

Urbanization and increased affordability. 

The Indian real estate sector is undergoing significant transformation, owing largely to the explosive growth of the country’s middle class and rapid urbanization, which is driving demand for affordable luxury housing in tier-1 cities. This segment is the foundation of India’s real estate market and is expected to grow further. The rise in incomes and demand for housing in urban areas has resulted in a massive urbanization process, which is the primary cause of urban India’s growth. 

Breakthrough performance 

The real estate market has been the primary driver of India’s growth story. Not only was the country’s economy the fastest growing, but real estate indicators were also at record highs. In retrospect, 2023 began with global inflation that threatened a full-fledged recession. Despite rising inflation, the real estate market performed well this year. A strong finish was seen across the cities, with Bengaluru leading the pack. The figures were unimaginable in the past, indicating strong expansion-driven growth. 

A thriving outlook. 

As the market prepares for a significant leap this year, there is an increase in demand for residential properties. It has become clear that property markets in India have grown significantly, with an increase in new launches and property sales. Fueled by overwhelmingly high sales and a thriving luxury segment, this instills confidence in developers, driving a supply pipeline and establishing major metropolitan cities as rapid real estate consumers. This promotes economic growth, stable interest rates, and a shift in public perception of property ownership, resulting in property ownership serving as a financial safety net. 

The Indian real estate sector, which is central to the economy and supports a variety of industries, is poised for continued growth. A strong economy, urbanization, rising incomes, government initiatives, and increased demand for various properties indicate a bright future. With a promising outlook, it remains one of the most secure assets for investors to hold in the future. 

UP’s real estate market will continue with investments of Rs 50,000 crore.

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The state government stated on its website that these real estate projects, which include vital works in Noida, Ayodhya, were introduced during the just-finished ground-breaking ceremony in Lucknow.

The government of Uttar Pradesh announced on Thursday that the state would experience a boom in the real estate industry with the start of projects valued at over Rs 50,000 crore, which will also lead to the creation of many jobs for the state’s youth.

The state government said in a statement that these real estate projects, which include major construction in Noida and Ayodhya, were introduced during the just-finished ground-breaking ceremony in Lucknow. 

Numerous well-known real estate companies, both domestically and internationally, have started working on projects in Uttar Pradesh. M3M India Private Limited plays a role in the project, investing Rs 7,500 crore in building official, retail, residential, and service apartments. More than 14,000 jobs will be available through the project for the state’s youth, according to the statement. 

Additionally, it stated, “With an investment of Rs 3,000 crore, the House of Abhinandhan Lodha has initiated a luxury residential and commercial real estate project in Ayodhya, which is to create over 1,000 job opportunities.”

In addition to Omex, Prateek Retailers India, Wonder Cement, Shipra Estate, Rishita Developers, Gallant Lifespace Developers, ANS Developers, SG Estate, ORO Infra Developers LLP, Guy Laroche, Sanfran Developers, Janico Developers, Apex Group, BBD Group Viraj Constructions, Gajadhar Technosys LLP, Amamrvati Homes, Nilansh Builders, and Sapphies Infrastructures LLP are among the other significant investors in real estate sector, according to the statement.  

“These real estate projects will provide Uttar Pradesh’s youth with numerous employment opportunities,” the government declared.

The government, noting that several well-known companies have implemented projects in the state through GBC 4.0, is optimistic about the logistics sector providing plenty of job opportunities to the youth of Uttar Pradesh in addition to real estate. 

The Sharaf Group is the largest investor, contributing over Rs 1,250 crore towards building a logistics park in the Moradabad district. According to the release, the project will generate more than 1,250 job opportunities in the state. 

According to the statement, the government approved the Warehousing and Logistics Policy to increase the state’s storage capacity in light of rising industrial investment in Uttar Pradesh.  

It also stated, “This policy encouraged the development of logistics zones and provided fast-track land allocation for logistics parks.” 

Five things to be aware of in the Bengaluru real estate market if you intend to rent an apartment there

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Thirty percent rent increases in specific parts of Bengaluru have caused the city’s rental inflation to exceed that of Singapore. 

Over the last few months, rent in Bengaluru has risen by over 20% to 30% due to several companies abandoning work-from-home policies, which has caused the “floating” employee population to return to their offices from their hometowns. As a result, there are right now far too many renters vying for a limited number of properties. Additionally, there have been cases where over four potential tenants have competed for the same property. Due to this, the IT city’s rental inflation has reached nearly 24%, making it competitive with other major cities like Singapore. 

Tenants in a city bereft of rental properties have been finding it difficult to comply with landlords’ constantly shifting demands; some have even gone so far as to look up potential tenants’ LinkedIn profiles. Additionally, there have been cases where real estate agents have given tenants have even jokingly said that it is harder to pass a “rental” interview than it is to pass a job interview. 

India’s average rental inflation rate now exceeds that of Singapore and Dubai. In Singapore, the average annual rental inflation has been approximately 29%, while in Dubai, it has been 20%. According to a NoBroker study, certain areas of large cities, like Bengaluru, are seeing exponential rent increases of 30% and higher. 

According to a report by Anarock Group, residential rent in India’s IT hub has increased by as much as 31%. “Rents will rekindle in the January to March 2024 rental market as Indians typically relocate in search of better job opportunities and amid increased hiring in the new fiscal year,” the report stated. 

The opening of Bengaluru offices has significantly increased demand for real estate near IT parks and office clusters. Additionally, there is a rise in demand for homes along these connectors as the new metro corridor comes online.

Properties near metro stations in the IT city have seen a 15-18% increase in rent due to increased demand. 

“Over the past year, Bengaluru has seen a sharp increase in housing rentals. According to Akhil Gupta, co-founder and chief executive and technology officer of NoBroker, “the average rent inflation to the IT capital has been 24%, with rent inflation reaching 30% in certain parts of the city.

A further trend is an increase in demand for rentals in areas that are accessible by metro but are not always close to office buildings.  

The mandate requiring employees to return to their workplaces has resulted in a notable departure of individuals, thereby augmenting the need for residential real estate. The need to purchase a home and the pandemic’s effects on supply and demand have raised demand for residential properties. Rents and prices have increased as a result, according to Gupta. 

He also mentioned how Mumbai’s metro connectivity has led to rental prices that are significantly higher than those of most other cities. It would be unfair to compare Bengaluru to Mumbai or Delhi because of how better connected these cities’ metro areas are.  

Metro connectivity is highly beneficial, as the IT city is known for having a lot of traffic. According to our annual report, Bangalore has experienced the highest rate of rent inflation thus far this year. 

According to him, there has been a 7-10% increase in rental inflation in the areas close to the metro line. 

One notable connection is the Metro corridor, which runs from the western city of Kengeri to the eastern IT corridor of Whitefield. 

According to Kiran Kumar, vice president of Hanu Reddy  Realty in Bengaluru, rentals in East and North Bengaluru have increased dramatically since the Metro opened for business. Desirable areas like Whitefield, Koramangala, and Indiranagar along the purple line have seen a 20% increase in rental prices.

Previously renting for Rs 30,000 per month, a 2BHK next to the Indiranagar Metro corridor now fetches Rs 45,000. Rent for a 5BHK independent bungalow is Rs 3 lakh per month. Last year, the rent was approximately Rs 1.9 lakh per month. Compared to approximately 70,000 per month last year, a 3BHK in a gated community in the same area now commands rents between Rs 80,000 and Rs 1 lakh per month. A 1-BHK apartment without a parking lot for Rs 10,000 a month is now renting for Rs 22,000.

Rental prices have increased in areas along the metro corridor because of better metro connectivity between the east and the north. Because there are fewer properties than there is demand for them, people are willing to pay higher rent for properties near the Metro, according to him. 

In Whitefield (located close to the IT corridor) as well, a 3BHK is going for Rs 50,000 to Rs 70,000 per month, and a 3 BHK villa that was going for around Rs 80,000 before the metro became operational today commands a rent of around Rs 1.5 to almost 2 lakh, he told HT Digital.  

Are rent negotiations tough for tenants? 

Looking at the rental market, it is still more in demand than it is in supply. The goal of tenants in gated communities is to obtain lovely residences. Therefore, even at high rentals, there are still a lot of takers in gated communities. There is hardly any time for negotiations because deals are closing so quickly. Consequently, Gupta said, “There is always another tenant waiting, willing to pay higher, even though tenants may want to negotiate.”

Has the cycle of rental deal closure gotten longer or shorter? 

The inventory shortage has resulted in a significantly shorter transaction timeline. Deals have closed in as little as one day on occasion. Tenants are inspecting the property before the weekend even arrives, Gupta says.

New draft notification

Prospective tenants should be aware that the city’s governing body for civic and infrastructure, Bruhat Bengaluru Mahanagara Palik (BBMP), is getting ready to introduce a value-based property tax on April 1. Property owners may pay twice as much in taxes on rental properties under the new system as on owner-occupied properties. It could put more pressure on tenants’ high rents because of the mismatch between supply and demand. 

Real estate trends: Why are wealthy Indians purchasing opulent homes before the fiscal year’s end?

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Real estate experts estimate that the ticket sizes for this year’s real estate transactions range from less than Rs 10 crore to more than Rs 100 crore. 

There was a surge in the quantity of luxury real estate transactions recorded nationally before the close of the fiscal year. The ticket sizes for these properties range from Rs 10 crore to more than Rs 100 crore. Real estate advisors point out that there are financial considerations in addition to the fear of missing out (FOMO) on the most desirable properties in town due to the limited supply of luxury properties, which is one of the main driving forces behind such decisions. 

According to them, one of the explanations might be that several investors who have profited from the financial markets are booking profits by buying real estate in anticipation of possible election-related volatility. 

The range of ticket sizes, which begin at Rs 10 crore and go up to over Rs 100 crore, is another trend that has come to light. They suggested that this might be because of the Rs 10 crore cap on long-term capital gains reinvestment under Section 54F enacted in the Budget in 2023. 

Here are a few recent high-value deals that happened in Mumbai and Delhi-NCR. 

A 10,000-square-foot apartment at the Cameliias by DLF on upscale Golf Course Road in Gurgaon recently sold for Rs 95 crores.

For Rs 10 crore, Bollywood actor Mrunal Thakur and her father bought two apartments from Kangana Ranaut’s family in Mumbai’s Andheri West neighborhood. 

Earlier this year, eight members of the Halan family—investors in stocks and other asset classes– paid a total of Rs 104 crore for four sea-facing twin apartments in K Raheja Corp’s opulent south Mumbai project. The apartments total 16,000 square feet. 

Vratika Gupta, the creator of the well-known decor brand Maison SIA, paid over Rs 116 crore to purchase an opulent apartment in Mumbai’s Oberoi 360 West. 

Demand for luxury homes is not limited to posh areas of Mumbai or Gurugram but also spreads to suburban locations. Krishna Kuppuswami Dasarakothapalli, known for films such as The Family Man, Stree, and Go Goa Gone, bought a duplex in Mumbai’s Goregaon suburb for Rs 30.50 crore this year. 

According to Anuj Puri, chairman of ANAROCK Group, sales of ultra-luxury homes (worth more than Rs 40 crore each) have experienced an unparalleled surge in CY2023, setting new records for both quantity and quality. According to the most recent data from ANAROCK Research, the total sales value of ultra-luxury homes increased by an astounding 281% in CY2023 compared to CY2022.

He continues, “CY2023 has already made Indian real estate history in ultra-luxury property sales before it is over.” 

Additionally, of the 62 ultra-luxury homes sold in CY2023, at least 12 had prices above Rs 100 crore, compared to just nine in 2022, according to Anarock data. In 2023, fifty opulent residences were sold for amounts between Rs 40 crore and Rs 100 crore. There were only four deals in this price range in 2022. 

He continues, “This demonstrates the country’s current appetite for ultra-luxury homes.” 

According to Amit Goyal, Managing Director of India Sotheby’s International Realty, who spoke with HT Digital, there has been an increase in high-end real estate transactions toward the end of the fiscal year.

Many investors who have profited from the stock market are now real estate investors. After all, the stock market is expected to remain volatile during the elections. 

“That is to say that ticket sizes are smaller than last year after the announcement in Budget 2023 and the changes to Section 54 and 54F went into effect,” he added. 

According to him, a surge of transactions surpassing Rs 100 crores was recorded in March 2023 as an increasing number of wealthy individuals utilized their earnings to acquire real estate before April 1, 2023, when the exemption from long-term capital gains tax for buying residential properties was limited to Rs 10 crores.  

According to Ritesh Mehta, Senior Director and Head of Residential Services & Developer Initiatives, West and North, JLL, several buyers are investing in real estate, the majority of which they intend to use for their use and booking profits from the share market.  

“This is one of the causes of the comparatively small ticket size compared to the prior year. Most of the deals in the previous year were above Rs 90 crores, especially after the long-term capital tax exemption for purchasing residential units at Rs 10 crores. Before the end of the fiscal year, most deals in the premium segment range from Rs 10 crores to more than Rs 100 crores,” he said. 

In the future, he says, “the trend is expected to continue.” 

Discover the top Indian cities for commercial real estate investments.

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Real estate investing has long been considered a prudent financial move, and commercial real estate has always set the standard for available options. Several Indian cities present enticing returns for investors in commercial investment while compiling a list of India’s top cities. 

Everyone says, “Investments are subject to market risk,” but very few guide where to put your money. This article may be helpful if you are considering investing in commercial real estate in India and are looking for options. 

Even though our nation is still developing, some cities have incredibly developed real estate markets with excellent investment opportunities. This article lists the top three cities for investing in commercial space with their benefits. 

What is a commercial property? 

Any real estate used for purposes other than residential is considered a commercial property. These properties, which can be office spaces, retail stores, industrial warehouses, or hospitality establishments like hotels and restaurants, are all intended to bring in money. 

Advantages of owning commercial real estate

Whether it is a home or business, real estate investment continues to be considered the better choice. Compared to other real estate investment options, commercial property has certain advantages. They are as follows:  

Consistent Revenue 

The possibility of a consistent income stream is one of the main benefits of investing in commercial real estate. Unlike residential spaces, commercial spaces usually involve long-term lease agreements with businesses. For investors, this guarantees a steady stream of rental income that is predictable and stable.  

Greater returns on rentals 

When compared to residential properties, commercial properties typically offer higher rental yields. Because the returns are typically higher, it is an appealing option for people looking to maximize their investment returns. 

Greater duration of leases 

Generally speaking, commercial leases are deeper than residential ones. As an investor, you can profit from long-term income stability, which lowers the risk of vacant properties and fluctuations in income. 

An increase in property value

Commercial properties in prime locations frequently increase in value over time. Property values rise in response to an improvement in the local business climate, which raises demand for commercial space. 

India’s top cities for commercial real estate investments 

Risks, future potential, and return on investment (ROI) are a few variables that determine which city is best for commercial investment. The top three Indian cities for commercial space investment have been ranked. Take a look at the list: 

Bangalore 

Bangalore, sometimes known as the Silicon Valley of India, is a popular place to invest in real estate both residentially and commercially. Due to its close ties to the thriving IT actor, there are numerous employment opportunities in the real estate sector. 

Astute investors believe Yelahanka, Hebbal, and Electronic City are great choices. Large companies like Dell, Aegis, Infosys, Wipro, Hewlett-Packard, Accenture, Tata Consultancy Services, and Tech Mahindra have chosen Bangalore’s IT sector, which boosts the city’s real estate market. 

Considering this, real estate investing is still very common in Bangalore. The dynamic real estate market presents an ideal opportunity for investors seeking to increase and stabilize their real estate holdings. 

Mumbai 

Mumbai, India’s financial hub, has added residential and commercial space to its real estate portfolio. Mumbai is one of the priciest places to invest in real estate investments, making it one of the most expensive places to do so. 

The strategic features of the city, such as the Mumbai Trans Harbour Link, Atal Setu, and several metro links, are crucial in promoting the growth of commercial real estate. As a result of this advancement, builders and developers have aggressively promoted investment by providing significant discounts on real estate. The Maharashtra government’s discounts and reductions in stamp duty have increased consumer confidence and interest in the market. 

Pune 

Pune, a megacity in Maharashtra, has established itself as a city with potential commercial investment, contributing 13 percent of the state’s GDP. The city is a center for technology, and major companies in the sector are in high demand for commercial space. The city’s excellent connection to Mumbai has contributed to the recent explosive expansion of the housing market. 

Pune’s real estate values have shown investors an excellent return on their investment. The purchase of real estate (both residential and commercial) saw a notable uptick in 2021. Experts in real estate predict that the city will maintain its current trend and emerge as a viable center for commercial investments. 

Summarize 

India and its developing cities offer investors plenty of space and investment potential. Therefore, the ideal location for your commercial real estate investment if you want a higher return on investment. Bangalore, Pune, and Mumbai are the best places to invest in commercial real estate. Before investing in any type of real estate, whether commercial or residential, it is advisable to conduct in-depth market research.

India’s fast-moving luxury real estate market: Why

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The demand for various types of lavish real estate has continued to rise and does not seem to be decreasing, as evidenced by buyers’ insatiable appetite for luxurious homes. In contrast to affordable housing, luxury housing has experienced tremendous demand from consumers before and after the pandemic.

According to a recent Anarock study, luxury properties in metropolitan areas above Rs 1.5 crore are experiencing what some experts might call a “golden run.” The report estimates that between January and September 2023, 84,400 luxury homes (with prices over Rs 1.5 crore in prime real estate markets, including Delhi-NCR, MMR, Bengaluru, Pune, Hyderabad, Chennai, and Kolkata. This figure surpasses the previous record of approximately 39,300 units sold during the same period in 2022. 

A trend worth observing in the current market, in addition to the overall rise in sales, is the diversification of luxury real estate. Uber-luxurious penthouses, villas, independent floors, or apartments have established themselves as standard luxury offerings for the business and ultra-rich, particularly given the apparent rise in demand for them in major cities. Top developers and real estate magnates have either upgraded themselves into luxury developers or are expanding their footprints in it swimmingly, highlighting exceptional profitable values concomitant with the thrill of getting massive consumer attraction with no budgetary constraints. 

One of the main characteristics of a plethora of opulent homes that nearly seem like irresistible opportunities for wealthy individuals to invest in wealth is that it has transformed into an oasis of innovative and breathtaking recreational spaces. Luxury homes often feature a broad range of physical infrastructure that inhibits a profoundly cosmopolitan environment, such as an open terrace, medical room, business lounge with desktop stations, kids’ laboratory, moon deck, prayer room, floating cabana, infinity pool, and snorkeling pool; other features include outdoor grills with open-air dining, mini theater, tuck shop, children’s gym, yoga room, kids’ mania, spa and salon, virtual golf simulator, gaming zone, and sun-tanning salon. Conversely, community centers, gymnasiums, and sports clubs have lost their shock value. 

Concurrently, numerous homebuyers have stated that they want to invest in communities that have earned green certification; this is a natural consequence of the post-pandemic awakening, which has led to a growing consciousness among individuals regarding their health. Due to their preference for aesthetically pleasing and health-promoting properties for their family, kids, and themselves, people frequently invest in luxury real estate. However, most luxury real estate agents are going green and incorporating eco-friendly building toolkits into their development agendas, taking a cue from Sustainability. Luxury projects now oversee the widespread inclusion of green areas such as herb gardens, butterfly gardens, bird’s zones, meditation zones, jogging tracks, pottery barns, and fragrance gardens to promote environmentally friendly homes. 

“Gurgram is the hottest luxury real estate market in NCR,” claims Vikas Garg, Joint Managing Director of Ganga Realty. The old roads’ aesthetic appeal and the new corridors’ quick construction, particularly those near the Dwarka Expressway, have helped the luxury real estate markets thrive and draw in new homebuyers. Sector 84 has grown to be one of the most significant areas for residential investment because of its proximity to the Dwarka Expressway and the Global City project. Additionally, contemporary luxury developments have a charming, timeless appeal and idyllic charm with a lavish array of internal and external amenities and built-in features that appeal to plenty of first-time homebuyers who desire homes with comprehensive features.” 

Saransh Trehan, Managing Director of Trehan Group, elaborates on the significant growth of independent floors in Gurugram, stating that “Independent floors have reached an optional level of purchases in Gurugram, undergirding a dramatic shift in favor of low-density living which offers privacy, enhanced security, and composure. “Among the most popular locations for independent floor options are Golf Course Extension Road and Southern Peripheral Road. These roads frequently offer many opulent amenities, stunning interiors, and comforts. Millennials and Gen-Z are known for preferring independent floors over shared ones. They prefer large apartments with flexible layouts, guaranteed privacy, and the freedom to come and go when they want to.  

India has a remarkable history and is the birthplace of luxury real estate. Globalization has sparked an endless period of acculturation, with Western concepts such as villas, low-density housing, and penthouses becoming thematically Indianized and appealing to home buyers who also want Indian luxury homemakers to adapt, explore, and reinvent themselves in multiple ways due to travel and cultural exposure. Although “luxury” was once thought to apply exclusively to bungalows, modern luxury real estate has expanded to meet the needs and preferences of various luxury home buyers. 

Experts predict that in 2024, India’s real estate market will reach new heights

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Due to high demand and plentiful supply, India’s real estate market, which resumed last year following a two-year hiatus caused by the pandemic, broke records in 2023. Sales across all segments and new launches experienced notable growth in the year.  

Strong demand and plentiful supply in the residential market during 2017 point to its revival and sustained growth. Ninety-one percent of all sales in 2022 were residential, with 196,227 units sold in the first nine months of 2023, according to a study released by real estate consultant JLL. 

The market for luxury homes expanded at a rapid rate. Sales between January and September of 2023 by prices in the mid-segment (Rs 50-75 lakh). Nonetheless, the premium segment’s share (above Rs 1.50 crore) grew from 18% in 9M 2022 to 22% in 9M 2023. In the premium segment, the first nine months of 2023 saw the highest sales in Delhi, NCR, and Mumbai.

What Industry Insiders Have to Say 

“As the final curtain descends in 2023, the real estate industry witnesses an impressive surge, with Gurugram’s mid-housing sector taking center stage,” stated Pradeep Aggarwal, founder and chairman of Signature Global (India) Ltd. The year-end reflection reveals an upward trend from year to year and demonstrates a strategic ability to satisfy the growing demand for reasonably priced yet high-quality homes.” 

“In 2023, the Indian real estate sector experienced significant prosperity, particularly in the luxury real estate segment, witnessing a remarkable 97 percent surge in luxury home sales,” stated Aditiya Khushwaha, CEO and director of Axis Ecorp. It emphasizes the luxury real estate market’s tenacity and appeal.”

He believes that through 2024, there will still be a growing demand for luxurious real estate and vacation rentals. 

Rise Infraventures Limited co-founder and MD Shantanu Gambhir, “Gurgaon’s real estate saw a remarkable price appreciation in 2023, outshining Bengaluru and Noida.” Despite a surge in real estate prices, the city saw a startling 28.9 percent increase in demand quarter over quarter, surpassing the national average. We anticipate that this trend will carry over into 2024.”

The real estate market in Tier 1, 2, and 3 cities made significant progress in 2023, and this promising trend ought to continue through 2024, according to Mohit Goel, MD of Omaxe Group. Cities like Lucknow, Chandigarh, and Dwarka, as well as other areas, became important centers for high-end residential and commercial developments, adding to the appeal of these places. The year ahead anticipates an elevation in the real estate landscape, promising substantial returns on investment and robust job creation.” 

He says government policies have played a role in this growth by driving demand, launching new products, and aligning consumer behavior with changing supply dynamics. He also says that demand from cities alongside tier 2 and tier 3 towns shows how aspirational living spaces are becoming increasingly popular, thus changing the real estate market. 

“In 2023, real estate developers strategically expanded into tier-2 and tier-3 cities, acquiring 1,461 acres of land, primarily for residential developments,” stated Radheecka Rakesh Garg, director of Rajdarbar Realty. This pattern emphasizes how important non-metropolitan markets are becoming, particularly for low-rise and plotted formats.” 

According to Garg, 2024 will see even more dynamism in the real estate market, satisfying the hopes of India’s smaller cities as developers look into unexplored growth areas. 

The real estate market in India saw exceptional growth in 2023, particularly in the luxury home market, according to Nayan Raheja of Raheja Developers. Luxury and large living spaces were significant responses to changing urban tastes.

With a startling 216 percent increase in sales of luxury homes, Delhi-NCR became a hotspot. Positive economic indicators drove this spike in NRI investments. Raheja went on to say that in 2024, there will be no letting back in the upscale housing market.