Kanika Gupta Shori, the Co-Founder and COO at Square Yards, has offered an insightful forecast for the Indian real estate market in 2024. She presents a thorough analysis based on predicted trends which are presented below.
Table of contents
Shori’s Projections on Property Rates
Property rates are expected to rise by 10-15%, in line with market fundamentals. Shori correctly links this increase to the ongoing rise in building material costs as well as a constant increase in homeowner demand across major cities. This projection appears to be supported by current trends, which show that average residential prices increased by 8-18% in the third quarter of 2023 compared to the same time in 2022.
Her Insight into Market Resilience
Shori’s recognition of the market’s resiliency in the face of a rate hike is astute. She emphasizes the persistent attractiveness of homeownership among potential purchasers by noting the resilience of sales despite rising house prices in the preceding year. This resiliency looks to be a persistent trend defining the industry, powered by developers’ cash flow, additional launches, and a staunch consumer desire of financial stability.
The Preference for Affordable Properties
Shori’s emphasis on the growing demand for inexpensive residences, particularly big 2BHK and 2BHK+ homes, matches the general move away from rental housing. This coincides with a changing paradigm in which prospective purchasers use EMIs as Systematic Investment Plans (SIPs) to secure non-volatile assets such as real estate by leveraging relatively low home loan interest rates.
Anticipated Trends in Luxury Housing
Shori’s recognition of the diversity of the market is also evident in her assessment of the ongoing demand in the luxury house category among HNIs and NRIs looking for sophisticated assets in India. The allure of technologically advanced 3BHK, 3BHK+, and 4BHK homes with distinctive features and opulent amenities showcases the segment’s resilience and attraction to discerning buyers.
Regional Market Insights
Her analysis of the expected spike in demand in tier-1 cities as a result of professionals returning to their offices and the appeal of tier-2 cities as a result of infrastructure development provides a thorough geographic picture.
Commercial Real Estate Projections
Shori’s remarks mostly address residential trends, but they also quietly draw attention to the anticipated growth in commercial real estate. The market is diversifying and deftly responding to outside forces, which is consistent with the expected rise in demand for office space, especially as flex spaces gain popularity.
In conclusion, it can be said that the Indian real estate market is expected to stay resilient even amidst price hikes. Kanika Gupta Shori has offered her valuable insights on the industry and its projections going forward for 2024 which offer an insightful picture for end-users and investors alike.
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Published Date: Dec 26, 2023
