The Indian real estate market is witnessing growth like never before. Whether it's Mumbai’s luxury real estate market or other cities like Pune, Hyderabad, and Bengaluru, every major city is breaking new real estate records every day.
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According to JLL's recent report, India's residential sector is projected to achieve sales of 290,000 to 300,000 units, driven by strong demand and high-quality new launches. The mid-segment price category continues to lead in sales, while the premium segment has experienced a notable 22% increase. The luxury segment, in particular, has seen an impressive 83% growth, with developers responding to the rising demand by launching new projects. This surge in demand for luxury real estate in India is attributed to changing consumer preferences and advancements in technology. By 2030, the Indian real estate sector is slated to register the coveted ‘one trillion dollar’ mark. During this time, to stay ahead of competitors, it is necessary to know the latest trends in the Indian real estate ecosystem. ‍

Trends Shaping the Indian Real Estate Market‍

1. The uprise of the Indian upper class 

Goldman Sachs predicts India's ultra-rich will hit 100 million in three years, driving up real estate demand. Despite a 40% increase in property prices and rising loan interest rates, 71% of India's affluent individuals remain eager to invest in real estate. In 2024, ISIR's Luxury Outlook Survey revealed that 83% of respondents were investing in multiple luxury properties, showing a trend towards diversified real estate portfolios. With 43% eyeing high-end properties and rent-yielding assets, luxury real estate stands as a key investment choice and a long-term wealth-building asset. 

2. Uprise in Luxury Housing: 

According to a report by JLL India, the total deal value of luxury homes in India witnessed a staggering surge, reaching Rs 4,319 crore in 2023. This marks a remarkable 51% increase compared to the previous year's value of Rs 2,859 crore.

Leading the charge in luxury real estate is none other than Mumbai, India's largest residential market. With a total of 29 luxury homes sold, valued at Rs 3,031 crore, Mumbai reaffirms its status as the ultimate destination for luxury living. Delhi-NCR and Bengaluru also make their mark in this segment, showcasing the growing demand for upscale properties across major Indian cities. 

3. Tier 2 cities are catching up:

Tier 2 cities have witnessed an impressive 12% average price appreciation in the last year, with investments surging by 40%. The demand for commercial spaces. In Tier 3 cities, there has also been a substantial 25% increase, signaling a shift in business hubs. Tier 2 cities like Ayodha, Noida, Lucknow, and Indore are bound to grow further with ongoing developments. Bhubaneswar, Coimbatore, and Indore are poised to become the next real estate hotspots. A report by Cushman and Wakefield predicts that these cities hold the potential to drive India's real estate sector forward.

4. Government Schemes: 

Finance Minister Nirmala Sitharaman unveiled plans for a housing scheme catering to the middle class. Additionally, the government intends to build approximately 2 crore homes as part of the PMAY rural scheme, advancing the Housing for all initiative. 

5. Low-Density Housing:

The demand for low-density housing, including villas, townhouses, and plotted developments, is on the rise. This housing type promotes sustainable living by using fewer resources and preserving land. Homebuyers are increasingly attracted to low-density options for their privacy, space, and harmony with nature—key benefits that stand in contrast to crowded urban centers. According to India Sotheby’s International Realty's Luxury Outlook Survey 2023, 33% of HNIs and UHNIs are willing to spend over Rs 10 crore on such properties. 

6. Proptech Advancement: 

With time, the old-school practices in the Indian real estate system are being replaced by proptech. The tech adaptation has only benefited the industry and pushed it towards further growth. Relata, one of India’s most innovative proptech startups, has accelerated real estate sales numbers for many, like House of Hiranandani, Dosti Realty, The Guardians, and many more.

Relata Solutions big real estate name in the Indian real estate sector has increased conversion by 37.3% and reduced marketing expenditures by a substantial 28%.

The pace of urbanization in our country is set to accelerate, with an expected increase of around 36% in 2023 and a remarkable 50% by 2050. With 1732 investment projects valued at a staggering USD 262.69 billion, India's real estate sector is a treasure trove of opportunities spanning across all states. These rising trends will sure boost this Indian real estate surge further. 

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