Future Forward: Real Estate Trends in 2024

By LODHA

Real estate in India, a pivotal driver of the country's economy, has witnessed remarkable evolution and growth in recent years. Fueled by escalating urbanisation rates and increasing disposable incomes, the housing sector reflects the aspirations of a burgeoning population in search of quality housing solutions.  

Why is India's real estate sector so appealing to investors? Factors like rapid economic growth, increasing disposable incomes, a favourable investment climate, and so on contribute to making the Indian real estate market a top choice for global and local investors. 

Forecasts paint an optimistic picture of the future of India's real estate sector. A report by Concorde projects a robust Compound Annual Growth Rate (CAGR) of 9.2% for the industry from 2023 to 2028, underlining its resilience and growth potential. Looking forward to 2024, let's explore some real estate market trends. 

Embracing the Future: Key Real Estate Trends Set to Dominate the Market  

Tech-Driven Innovations 

We're living in the digital age, and like every other facet of our lives, technology is likely to become a pervasive part of the real estate market. With experts anticipating augmented reality to make its appearance on the real estate scene, property viewing is likely to undergo a revolution of sorts. Similarly, virtual reality technology will help potential investors enjoy a more immersive property viewing experience. Such technological integration will also allow for remote viewing of property, making it easier to conduct real estate transactions with greater ease and opening newer markets. On the financial side, blockchain technology is likely to gain traction in the real estate sector. Its advent in the housing market is anticipated to make transactions quicker, less tedious, efficient, transparent and less fraudulent. 

Luxury Living 

The luxury real estate sector has historically exhibited resilience, remaining stable amidst fluctuations in external factors such as real estate prices and interest rates. With evolving consumer preferences and technological advancements, the demand for luxury real estate investment in India is growing. Real estate developers and investors operating in this space are staying abreast of these evolving trends while adjusting their strategies to capitalize on the opportunities arising from the changing landscape of luxury housing and second-home demand. 

Building for Tomorrow  

With climate concerns escalating, sustainability has become imperative, prompting the real estate market to respond accordingly. The sector is committed to fostering inclusive and sustainable growth by implementing key policies such as building resilient infrastructure, promoting sustainable developments, fostering innovation, ensuring safety and promoting sustainable consumption and production patterns. Real estate developers in India are increasingly committed to sustainability, pursuing certifications like IGBC and LEED to create eco-friendly developments. 

The Co-Working Boom  

The coworking industry in India is experiencing a remarkable surge, due to a robust startup ecosystem and a soaring need for adaptable workspace solutions. Projected to expand at a CAGR of 16% from 2021 to 2026, this growth is emblematic of India's dynamic entrepreneurial landscape. As the third-largest startup hub globally, India has witnessed a demand for coworking spaces, driven by sectors like IT, technology, e-commerce, healthcare and logistics. Beyond providing mere office space, coworking environments foster collaboration, networking and cost-effectiveness, presenting an appealing proposition for businesses across India's urban spectrum, from metropolises to emerging towns. 

Smart Cities Momentum 

The Indian government's Smart Cities Mission is gaining momentum, with cities investing in smart infrastructure, technology and sustainability. This shift will reshape the real estate landscape, prioritizing integrated design and improved amenities. Smart cities can improve the quality of life of residents, a crucial factor for real estate investors as it directly influences the value of investments. The revenue in this sector is expected to reach US$2.60 billion, reflecting the rapid growth and transformative impact of smart city initiatives. 

Homeownership For All  

With the Indian Government making affordable housing their top priority, you will see various initiatives and incentives encourage affordable house buyers. Such projects are intended to meet the rising demand for housing in urban and semi-urban areas. These schemes aim to address the growing demand for quality housing among low and middle-income groups by making homeownership more accessible and affordable. For instance, the Finance Minister in her interim budget 2024 speech said, "Our Government will launch a scheme to help deserving sections of the middle class "living in rented houses, or slums, or chawls and unauthorized colonies" to buy or build their own houses." 

Amidst a plethora of transformative housing market trends reshaping the real estate sector in India, the market is poised to welcome these revolutionary transitions, marking the dawn of a new era in housing that aligns with the aspirations and lifestyles of modern society. With an emphasis on lifestyle, affordability, sustainability and digital advancement, the future of Indian real estate brims with excitement and promise, making it the best time for investment.  

We, at Lodha - India's largest real estate developer, deliver thoughtfully designed, premium residential and commercial developments that shape urban lifestyles. Our projects are conceived as nurturing environments, curated to enhance the lives of our patrons. They seamlessly integrate exemplary design, meticulous attention to detail and unparalleled service, reflecting our commitment to excellence in every aspect of our work.