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India’s real estate is growing in size and quality, with more demand for luxury homes as the middle and upper classes seek comfort, exclusivity, and modern living.
India’s real estate market is growing rapidly in 2024, Young buyers, like Millennials and Gen Z, as well as women are looking for homes with comfort and good locations.
Authored By Kirthi Chilukuri:
Due to rapidly growing infrastructure and changing preferences of customers the Indian real estate industry achieved noteworthy milestone in 2024. One of the main development engines is luxury homes.
According to CBRE (Coldwell Banker Richard Ellis), between April and September 2024, about 1,40,000 housing units were sold, with nearly 1,30,000 additional units added. This trend reflects the growing need for residences that may meet a variety of demands, from ultra-luxury to more affordable options.
Factors Driving the Real Estate Boom
Disposable income: It is an important economic metrics that help organisations and people determine their financial security. The most effective strategy to raise your disposable income is to spend less.
Tips to Utilise Your Disposable Income Wisely
Create a budget:
- Total Income: What you earn each month.
- Essential Expenses: Bills like rent, utilities, groceries, and transportation.
- Savings Goals: Money saved for emergencies, retirement, or future needs.
- Investments: Money put into stocks, real estate, or other investments.
- Other Spending: Optional expenses like entertainment, shopping, or hobbies.
Prioritise Savings and Investments: Save a part of your income for emergencies, retirement, and investments, focusing on long-term security rather than spending on short-term goals.
Set Financial Goals: Set clear financial goals like buying a home or saving for retirement, and use your extra money to work towards them.
Seek Professional Advice: Consult with financial advisors to make a plan that fits your goals and how much risk you’re comfortable with.
Plan for Future Expenses: Plan for future expenses like home repairs, education, or healthcare, and set aside some of your income for them.
Luxurious Living: The New Normal
These days, purchasers are searching for a lifestyle with luxury residences that provide a variety of residential, commercial, educational, healthcare options.
Evolving Buyer Demographics:
Age, income, and household size are examples of demographic trends that impact housing demand in India as people’s wants and habits evolve over time.
1: Millennials and Gen Z Influence
As their careers grow, they see real estate as a way to build wealth and financial security. These generations prefer homes with top facility, eco-friendly features, and great locations. After covid pandemic the rise of remote work allows them to choose homes that offer peaceful or lively company. Social media boosts the appeal of luxury real estate as a symbol of success and status. Millennials and Gen Z are changing the luxury real estate market, driven by financial goals, lifestyle, and social aspirations.
2: The Rise of Women as Key Buyers
Women are increasingly becoming key buyers in the real estate market, they are taking their financial decisions and investing in properties.
Women are also taking part as a broker, agent and executives in real estate industry. Women have a unique perspective. They prefer safety, accessibility and a friendly environment while investing in properties. Women are also good in negotiable and communication as compare to men. They can also lead to more opportunities for collaboration.
Challenges and Opportunities for Developers
Challenges in real estate development include reading the market accurately, responding to local opposition, and handling the local government.
Real estate development is about building new buildings or improving old ones to increase their prices.
Some key factors of real estate market are:
Demographics: These are details about a population, like age, gender, income, and where people live or move.
Interest: Interest rates affect home prices and buying power. Lower rates make property loan cheaper, increasing demand and prices, while higher rates raise property loan costs, reducing demand and prices.
Economy: The economy affects real estate values. When the economy is slow, the real estate market also slows down.
India’s real estate market is growing rapidly in 2024, Young buyers, like Millennials and Gen Z, as well as women are looking for homes with comfort and good locations. Interest rates and the economy also affect the market. While developers face some challenges, they have the advantage of the strong demand for luxury homes. In short, the market for luxury residence is growing as more people want modern, exclusive living spaces.
Conclusion
India’s real estate is growing in size and quality, with more demand for luxury homes as the middle and upper classes seek comfort, exclusivity, and modern living.
(The author is the founder and managing director of Stonecraft Group)
