Some trends have indicated steady evolution in the Indian real estate market, in terms of buying preferences and trends. Homebuyers are clearly more inclined towards spacious and larger homes that come with better and top-notch amenities too. Many buyers are now looking at the experiential and quality of life quotients of homes along with luxury. They do not want to compromise on the same in the quest for basic living spaces.
Industry experts feel that these trends are naturally reflective of things like growing buyer income and a willingness to stay invested for the long haul, especially for those buying larger homes in Tier-1 cities. Naturally, real estate developers are finding opportunities in launching premium projects in newer locations and many emerging micro markets, a trend which is taking luxury living beyond a few select areas in major cities. This momentum should continue further as per experts, who feel that the infrastructural growth of the country will keep driving the boom.
Mumbai is already witnessing a spate of redevelopment projects according to some and this will reshape the entire skyline with more premium developments. Noida and Gurgaon are other leading cities which are already witnessing a growing propensity for luxury residential units in gated communities with lifestyle amenities galore. Increasing mid-range and luxury housing demand also reflects the current health of the real estate market and its future growth prospects, while also indicating the economic prosperity, investment potential, and infrastructure-building that are key trends in the country today. This is already having a positive spillover impact on many other categories too.
Reports indicate how sales figures grew to 38% for mid-segment homes from 35% in H1 2022, while premium units saw growth to 30% from 25% in the same period earlier. The sales volumes, however, have come down to 32% from 40% for affordable homes. What of these properties? Industry watchers feel that oversupply in some markets has led to more buyers looking at bigger homes instead. At the same time, it will continue being relevant as a housing category, with the Government’s emphasis on the same.
Demand growth for mid-segment and premium homes is currently at the highest levels since the year 2018. H1 2023 had 47,130 and 59,563 launches in the premium and mid-range categories. The two categories led the pack for total launches with 42% and 35% market shares respectively. Kanika Gupta Shori, the Founder and COO, Square Yards, has stated that the consumer preference evolution is in sync with the growing confidence of buyers and investors in the market, particularly for higher ROI on investments and long-term value generation ensured by premium units. She also stated that the maturity of homebuyers is reflected through these steadily-changing trends, while adding that property price and interest rate hikes have not been dampeners for buyer aspirations. This also serves as an indicator of better economic conditions and higher purchasing power according to her.
Square Yards is a technology-enabled, global real estate aggregator and India’s largest player for primary residential real estate. It’s subsidiary Square Capital is one of the largest marketplace for secured mortgages in India. Square Yards platform offers an integrated consumer experience & covers the full real-estate journey from search, discovery to research, transactions, home loans and post-sales service – fully integrating buyers to an extensive network of 500+ partner real estate developers, and 90+ banks & NBFCs. Square Yards is led by accomplished professionals, ex-bankers, and Ivy school alumni and is backed by the competence of more than 2500 employees in 30 cities and ten countries.