The year 2022 was very good for the real estate industry. Although all sectors have shown positive outlook after the effect of Covid-19 subsided, but 2022 has been a “turn-around year” for the residential and retail real estate sectors. India’s growth for multi nationals may have slowed down but domestic demand still remains steady.
Growth will be 9.2% between the years 2023-2028
According to a report, India’s real estate market is expected to witness a compounded growth rate (CAGR) of 9.2% during 2023-2028. In the financial year 23-24, the strength in the real estate sector can be seen because at this time the demand will be high and the rates of home loans will also be low. Many rating agencies believe that the Indian economy is expected to grow by 8-9%, which will further boost growth in the real estate market.
Boom in Tier 1 and Tier 2 markets
Apart from important policies like “Housing for All” and Pradhan Mantri Awas Yojana, the government is developing and building infrastructure mega-projects like highways, new airports, metro. Due to this, there will be a boom in the real estate market. Interestingly, real estate will grow rapidly in Tier 2 and Tier 3 markets as well. If this happens then investors are expected to get adequate returns.
Commercial real estate will also boom
In recent years, India has invested heavily in improving travel, business and residential exploration. Apart from residential growth, commercial real estate is also one of the lucrative domains in the sector. Due to the growth of the country’s e-commerce industry, the demand for warehouses has also increased. Apart from this, the PLI scheme of the government is greatly increasing the demand of the warehousing industry. This is expected to significantly increase the production of smartphones, APIs and other products.
Government should take this step to increase demand
To maintain the demand in the real estate sector, the government should offer tax breaks for home buyers in the budget. Not only this, all the state governments should waive stamp fees and registration fees to continue the demand. By doing this the demand will increase and the economy will get strengthened.
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