Indian real estate in 2023 is living up to the saying that every cloud has a silver lining seems true. After the surge in construction prices and the increase in rates by RBI, the industry is regaining momentum.
But, the remote working and Hybrid working models worked as an aid for the realty market. Also, the virtual site visits and omni-channel retail strategy will play a pivotal role in the sustainability of Indian real estate in 2023. India being a workforce of talented professionals, leasing activities are witnessing positive responses from corporates in the property market.
Well, it is just the beginning, as the continuous growth in demand for residential units and office spaces acts as a breather for the realty sector. In fact, the expected capital expenditure on the infrastructure will boost the property market sentiments positively. Let us have a detailed insight into the real estate movement in 2023.
Real Estate in 2023: Residential Sales Trajectory to Move Upwards
The demand for housing units witnessed a hike in the past few years, as people felt the need for a dedicated place to work and live during the pandemic. Although, the stringent monetary policy is one thing that homebuyers must be looking forward to. But, as said earlier, the self-owned home is now a necessity.
Real estate in 2023 will witness a key share in residential sales under the mid-range segment. Homebuyers with a moderate budget will have maximum demand for residential units. With this, the ratio of unsold inventory is likely to cut down.
Also, the premium segment is estimated to have good sales figures as many premium residential projects are aligned for launch in the upper-price bracket. The capital appreciation of unsold inventory in the same segment will push to the demand residential units. If the predictions are to be believed, then the apartments ranging from 1,200 – 1,500 sq. ft. will have a huge demand during the real estate in 2023.
Retail to offer a complete New Experience
The prediction is that there will be an increase in brick-and-mortar retail sales from the last year. For the expansion of their portfolio and to mark a strong market presence, many brands plan to open offline stores in various locations. The Retail outlets will emphasize offering experience for bridging the gap between retailers and consumers.
Real Estate in 2023: Improvement in I&L Activities
The current Government policy initiative like the Multi Modal Logistics Parks is expected to improve this year. From now onwards, the new-age warehouse requirements will have features like green certifications, coupled with energy-saving & green operations. The concept of “flight-to-quality” will make operations proficient. Not just this, but developers will also come up with projects like smart warehouses. The National Logistics Policy will reflect this year and the Government will emphasize on strengthening the port infrastructure. The current Government policy initiative like the Multi Modal Logistics Parks will improve this year. From now onwards, the new-age warehouse requirements will have features like green certifications, coupled with energy-saving & green operations. The concept of “flight-to-quality” will make operations proficient. Not just this, but developers will also come up with projects like smart warehouses. The National Logistics Policy will reflect this year and the Government will emphasize on strengthening the port infrastructure.
Talking about investment, the equity inflow is likely to stay static this year as the winds of recession are blowing in Europe and US. Also, India is likely to witness the maiden retail REIT and it will create new investment avenues from investors across the world.
Real Estate in 2023: Conclusion
As we conclude real estate in 2023, here is one thing you must know. India will witness its first-ever retail REIT that will create new investment avenues for investors globally.
