The year 2022 has been iconic for more than one reason. With a lot of dynamic changes in the tertiary sector, the real estate industry has been quite volatile and has gained momentum at a rate of 4% increase with each quarter. A lot of new verticals simultaneously scaled up in the domain of real estate and have given the investors a lot of options to make their best deal. For instance, the concept of Deen Dayal Jan Aawas Yojana and Shop cum Offices has been received wholeheartedly. If reports are to be believed, more than 44% of the investments have been made in these two verticals in the last quarter of 2022.
Keeping these trends in mind, it will be insightful to see what trends are going to persist in the upcoming year 2023 as well. Let us therefore look at some of the predicted trends that are going to rule in the first two quarters of 2023.
The luxury sector is going to boom with an unprecedented escalation
It is evident that the luxury sector will contribute to the year's growth and will invite investments from all walks of life. Post the pandemic upsurge, the real estate market will soon emerge profitably in Tier 2 and Tier 3 cities, leading India to grow by 8 to 9%. Shortlisting housing opportunities would be easier for the new investors as the virtual platform is going to take over. The rate of interest is also going to increase, and this might slow down the rental market for a short duration of time. The chance to create wealth, use equity as leverage, and safeguard your money from inflation are therefore going to work in favour of real estate investment.
The Volatility of the market will assumingly skyrocket
Quick and hassle-free capital gain is definitely going to make the process of investments faster, and the bidding processes will certainly rise in 2023. The biggest advantage of the volatility of the market is that people will now be making decisions and will not procrastinate the process of investing in real estate. This trend will work in favour of real estate in 2023 as well as in 2022. The success rate of such conversions is also quite high.
The growth of the economy will lead to prosperity in the real estate sector
As the population of India is arguably going to increase by 2023, the requirement for the housing properties and commercial properties is also going to expectantly increase. Nowadays, even youngsters are quite interested in establishing their own start-ups and do need spaces that are affordable as well as have great footfall possibilities. SCOs are going to benefit from the same and will certainly capture the interest of more investors.
Lower interest rates & government subsidies will work in the sector favour
A great deal of subsidies like tax benefits for developers, financial assistance for the purpose of housing constructions, and numerous other incentives by the government will greatly benefit the real estate industry. Earlier people would hesitate a little before putting their hard earned money into the real estate industry because of the security and the stability associated with it was quite questionable. However, as has been observed in 2022, the government has been extremely supportive and has been making schemes and is coming up with multiple guidelines in order to ensure that the investors have a safe and profitable experience
Ready to move commercial segment demand is going to rise
People are now becoming more open to the idea of investing in ready- to-move commercial segments. The most important reason for the same is the least investment required from the end of the buyers of the properties who can further give it out on rent and on great profits.
Pre-leased property will get you more profits
In 2023, the affordability retained in 2022 shall continue and people will likely prefer pre-leased properties. Of course, the reason for the same happens to be assured and fixed returns. This will act in favour of investors as well as developers both.
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