Experts believe that 2023 is a mercurial year of economic unpredictability across the globe. If there is one bright spot amidst looming uncertainties, it is the real estate sector. In India, it is expected that both commercial real estate and the housing market will see a rise in demand this year.
Here are some of the broad trends and predictions for the real estate sector for 2023 -
- Luxury Living – In 2015, with the launch of the Pradhan Mantri Awas Yojna, the central role of housing in Indian society came into sharp focus. Housing for all has been the goal many administrations have worked towards, and demand for affordable housing started to gain traction. However, the resurgence of housing demand following the pandemic is now focused on luxury living. It is perhaps the austerity of the past three years or the enhanced value we place on homes that are driving the demand for spacious and luxurious apartments. Upscale apartment projects with a host of comforts and amenities shall certainly see a rise in 2023.
- Property and Technology – Real estate has been one of the slowest sectors to catch up with digital advantages and leverage tech innovations. 2023 shall see the slow but compelling transition of the sector into a tech-powered force. Developers and builders are increasingly adopting proptech software and technologies that optimise efficiencies across the food chain. Homebuyers and investors, too, are taking advantage of online home buying platforms like Blox. Blox brings verified listings directly from developers and enables home buying in 7 clicks. The use of technologies such as virtual project tours and home visits is likely to make it big in 2023.
- Go Smart – Another aspect of technology and innovation that is making it big in real estate is the rise of smart homes. AI, data analytics, and the Internet of Things are automating our household devices and systems like never before. Smart security systems, facial recognition monitors, motion-sensing lighting, weather-sensing HVAC, and smart TV/entertainment units – these have become some of the top needs of homeowners. 2023 is the year home automation scales new heights with innovations and applications flooding the real estate market. Smart homes shall certainly be the range among homebuyers.
- Focus Environment – As India forges ahead with its commitments towards Agenda 21 and net zero carbon emissions, sustainability and green technology takes centre stage in the real estate sector. The demand for green housing is on the uptrend, and developers, particularly those in Tier 1 cities, are adopting ergonomic materials and energy–efficient processes. Green housing accreditation organisations are also expected to receive a great many more applications from real estate developers in 2023. The demand for open green spaces, waterfronts, rainwater harvesting systems and efficient waste management systems shall also head homebuyers’ list of priorities.
- Community Living – Experts predict the rise of co-living spaces, co-working facilities, and residential apartments with strong community ties. The lessons learnt over the past few years have taught us to rely on each other in times of crisis. Also, the housing needs of migrant professionals and employees of the service sector have given rise to a huge demand for co-living spaces. These are an excellent alternative to traditional PGs and hostels due to the high-end amenities they provide while keeping up the affordability factor. Community living spaces and associated services will likely make it big in cities and urban centres in 2023.
“Real estate is central to any portfolio or asset allocation. Almost everyone owns or wants to own real estate...It is the most risk-adjusted, balanced asset class”, says Aditya Jhaveri, Founder and CEO of Blox. Given the extreme volatility of the equity market, the unfavourable tax implications of government policies on debt funds, the low returns offered by fixed investment options, and the fears of a looming recession, real estate has emerged as the hero of financial planning and asset-building exercises.
A home, a residential property, is more than just an investment. It is perhaps the only asset with a utility value. This was one of the major learnings from COVID-19 when people enjoyed the advantages of owning a flat or apartment while other financial investments could not give them any meaningful advantage. This lesson has been carried by the average Indian into 2023 and translated into a greater need to buy and own a home.
While there are some concerns regarding the rise in interest rates, at least in the first half of 2023, this also incentivises developers and builders to reduce prices in an effort to discount any unsold inventory. As a result, this is the best time for homebuyers to look for, compare, and take their pick of apartments, flats, and projects that suit their lifestyles. 2023 is indeed the year of real estate, and buyers can expect an exciting time ahead.
