How will be the Real Estate Market in 2023
Real Estate Market in 2023
The Real Estate Market in 2023 is going through a technological revolution. Interestingly, real estate in tier two and tier three markets will also see a sharp rise. Across the region, a number of creative strategies and solutions are being deployed to facilitate buying and selling.
Indications suggest that the Indian Real Estate Market in 2023 will continue to have a strong and positive momentum due to stable structural fundamentals, increased demand, and a reduction in home loan rates.
A favorable economic outlook will contribute to the market correction. Most rating agencies have estimated India’s growth to be between 8 and 9 percent. The increase in housing demand is a logical consequence of the expansion of commercial operations, improving labor markets, and rising income levels.
The Indian Real Estate Market in 2023 is going through a technological revolution. Interestingly, real estate in tier two and tier three markets will also see a sharp rise. Across the region, a number of creative strategies and solutions have been deployed to facilitate buying and selling. they include:
House hunting going digital: Digital platforms existed before the pandemic, but during and after the outbreak, the need for these platforms increased across all industries. Some even booked their properties online.
Apart from home tours, other parts of the home-buying process are becoming digital. Additionally, home loan arrangements can now be made online. This component will serve as the basis for the purchase and sale of real estate. With time and technological advancement, online buying and selling of real estate will increase manifold.
A seller’s market: The upcoming housing market will be a seller’s market. Home prices are expected to remain elevated for some time due to rising demand and limited supply. Generation Y is the age to start investing in real estate for the first time.
As a result, the demand for residential and commercial construction increases every day. The future of the Real Estate Market in 2023 will be marked by an increase in demand and a restricted supply, creating a seller’s market.
Increase in property prices: With demand rising and the market becoming a seller’s market, the end result will be an increase in prices.
Homebuyers are aware of rising prices. Some buyers are willing to pay much more than the asking price to secure the acquisition. Rising home prices have increased the equity of existing homeowners.
High Rates of Interest: The era of low-interest rates is over. Rising inflation and the current geopolitical scenario will keep pressure on lending rates. Lending rates are expected to climb in 2023.
Luxury market to continue to boom: The luxury segment has been a growth driver for the Real Estate Market in 2023, and this trend will continue in 2023. There will be an increase in demand for large, high-end properties priced at Rs 2.5 crore and above. , an Increasing trend of WFH and hybrid working models is further fueling the demand in this segment.
Increased desire to own a home: Despite higher home prices and forecasts of an explosion in the housing market, the demand for home ownership remains strong. Young and first-time home buyers will dominate the property market. This is large because property rental rates have reached an all-time high. The rising appreciation of the US dollar against the Indian rupee is also helping.
Rental market slowing down: Post Covid there has been a spurt in the desire to own a property. Those who can afford it are looking to buy a home, and the demand for rental properties is expected to decline in large metropolitan areas. Today people prefer to buy homes rather than rent as the rental value has become at par with the EMI values, and the rental market has declined due to the increase in affordability of the people.
Office leasing will see a rise: The demand for leasing space will increase, especially from IT, IT, and retail businesses. Already, large tech businesses have signed office leases with hefty price tags. E-commerce and third-party logistics companies will continue to invest money in warehousing, making it one of the fastest-growing commercial real estate segments. In addition, investment in data centers will increase.
Lastly, apart from the stock market, other financial assets have continued to be fragile, making real estate a viable option. The Real Estate Market in 2023 will be an interesting investment opportunity for investors with a long-term horizon and no need for immediate returns.