The Indian real estate sector is expected to go through a productive growth phase in 2023. Experts eye an increment in demand, along with the solid infrastructural benefits in the sector. Besides, affordable home loans make the real estate market ideal for investors. The industry would further consolidate in this year, and the economic outlook would be quite favourable.
Many rating agencies believe that the growth of the real estate sector in this fiscal year would be between 8% and 9%. Besides, there would be a growth in commerical activities. The job market would also improve in India, giving a better flow of income to the buyers. All these factors are likely to increase the demand for quality homes.
The bouncing back of the real estate market also marks its progression. Over the last few months, it has continually recovered from the setback stemming from the pandemic. In the last half of the previous year, the real estate market in India started showing signs of recovery. The government has also taken measures, altering the repo rates, thereby increasing liquidity.
Moroever, the developers have come up with lots of attractive policies. These schemes have attraced the fence-sitters, who eventually invested in properties. This also gave a boost to the market. This trend is likely to continue in 2023 as well. Interestingly, there would be a growth of the real estate sector in the tier 2 and 3 cities as well. Some of the reasons that are fuelling this growth include better career prospects, increased connectivity, and better infrastructure investments. Currently, cities like Agra, Kanpur, Lucknow, Cochin, and Patna are witnessing an increment in the demand for real estate. New airports are coming up under the UDAN scheme which would also bring about regional growth.
The real estate industry was under pressure durign the pandemic. Besides, the commerical giants in the IT, tech, and retail sectors are looking for commerical properties. Logistic enterprises and e-commerce companies are willing to operate from different cities. Moreover, large companies like Amazon and Google are prepariing to invest in commerical spaces and operate from India. Considering these aspects, the real estate sector in India looks bright in and beyond 2023.
