By B K Malagi
The Indian real estate landscape has been a dynamic canvas, constantly evolving to meet the ever-changing demands of the market and the aspirations of the people. The projected market size of the real estate industry in India is approximately $0.33 trillion in 2024, with anticipated growth to reach $1.04 trillion by 2029. This indicates a robust compound annual growth rate (CAGR) of 25.60 per cent throughout the forecast period from 2024 to 2029. Having stepped into 2024, a pivotal year, it's essential to envision the potential pathways that could define this next chapter in the evolution of Indian real estate.
Portfolio Diversification and Data-Backed Decisions
One of the significant shifts we anticipate in 2024 is a visible trend towards portfolio diversification and a more strategic approach guided by data. Real estate stakeholders, including developers and investors, are recognising the importance of making decisions backed by robust data analytics. This approach not only enhances risk management but also ensures that projects align with the evolving preferences of homebuyers and market demands.
Sustainable Real Estate: From Soundbites to Realities
Sustainability has been a buzzword in the real estate sector, often discussed but not always implemented. However, in 2024, we anticipate a significant leap where sustainable real estate moves beyond mere rhetoric to become a tangible reality. Developers are likely to focus more on sustainable development practices, incorporating green building materials, energy-efficient designs, and smart technologies. This shift aligns not only with global environmental goals but also addresses the increasing demand from environmentally-conscious homebuyers.
Technology Integration: A Paradigm Shift
2024 is poised to witness a substantial integration of technology across various facets of the real estate sector. The adoption of Virtual Reality (VR) and Augmented Reality (AR) is expected to become mainstream, transforming property viewing and interior designing. These technologies will not only enhance the customer experience but also streamline processes in property management, sales, and marketing. Moreover, blockchain technology might find its application in ensuring secure and transparent transactions, bringing a new level of trust to the real estate ecosystem.
Affordable Housing: A Continued Emphasis
The government's commitment to promoting affordable housing is likely to persist in 2024. Various schemes and incentives are expected to encourage developers to focus on building affordable homes and creating the necessary infrastructure to support them. This emphasis aligns with the goal of providing quality housing to a broader segment of the population, fostering inclusive growth in the real estate sector.
Smart Cities: Redefining Urban Living
The Smart Cities Mission, a visionary initiative by the government, aims to transform cities into sustainable and inclusive urban spaces. In 2024, we anticipate an expansion of this mission, with more cities joining the ranks of smart cities. This will not only create opportunities for real estate development but also pave the way for innovative urban planning, incorporating smart infrastructure and technology integration.
ESG compliances: The Growing standard
ESG (Environmental, Social, and Governance) compliances in commercial development are swiftly becoming the norm in both the USA and Europe. As sustainability takes centre stage in the business world, companies are increasingly integrating ESG criteria into their strategies. This shift signifies a broader commitment to environmentally responsible practices, social impact, and robust governance structures. In both regions, regulatory frameworks and market expectations are driving this trend, pushing commercial developers to align their projects with ESG principles. This evolution reflects a growing awareness of the interconnectedness between business operations and broader societal and environmental concerns, marking a pivotal transformation in the commercial development landscape.
As we look forward to the possibilities that 2024 holds, the Indian real estate sector is on the brink of a transformation. Sustainability, technology integration, affordable housing, and smart city initiatives are poised to shape the industry, aligning it with global trends and meeting the changing preferences of consumers. This evolution represents not just progress in construction and development but a commitment to creating vibrant, sustainable communities for generations to come. 2024 is not just a year; it's a gateway to a future where Indian real estate stands as a beacon of innovation, resilience, and inclusivity.
The author is the COO at Experion Developers.
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