The India housing market is anticipated to witness significant market growth in the coming years owing to rising demand for apartments to accommodate growing population. Rising disposable income of consumers due to economic growth is likely to boost confidence of consumers. This, in turn, can increase their willingness to buy expensive houses in well-developed cities and upgrade their living standard. Manufacturers, real estate investors, and other international companies are eyeing growth opportunities in the country, considering its market potential.
Increasing construction activities in metro cities like Hyderabad, Ahmedabad, and Pune are expected to augment market growth. Soaring home prices in these cities from past few years are likely to contribute significantly to market revenue in the coming years. Rapid urbanization owing to growing middle class population can support market expansion in the coming years. Supportive government initiatives to develop affordable housing for those in need can drive the market. Advent of regulatory policies in favor of real estate development is projected to increase construction activities, thereby stimulating growth of the market in the coming years. Moreover, easy availability of housing loans at low interest rate from banks and private lending companies can boost sales and increase market revenue.
Major changes in national currency through demonetization and high acquisition cost of land are likely to hamper market growth. Supportive initiatives by builders to provide easy installment options for consumers can create lucrative opportunities for the market.
Based on home type, the market can be categorized into apartments or flats, bungalows, villas, penthouse, studio flats, and condominiums. Apartments or flats are expected to account for the largest market share in the coming years owing to high consumer preference for flats or apartments. Increasing number of real estate builders constructing huge towers offering different types of flats to target a wide range of consumers can augment the segment’s growth. Advent of various models in flats like 1 bathroom, hall, and kitchen (BHK), 2 BHK, and 3BHK is likely to gain traction among consumers. People with a low budget can purchase a house as per their requirement.
Rising construction activities in most cities of India are anticipated to increase the availability of homes in the coming years. This, in turn, can boost sales and generate revenue for market players. Improving living standards of middle class people owing to rising disposable income can augment market growth in India. Rising demand for designer homes among high net worth consumers can impel growth of the market in the country. Increasing spending power of consumers on the luxury apartments offering world class facilities is likely to fuel market growth in the coming years. Supportive government initiatives and regulatory policies to eliminate slum areas from the country by providing affordable homes to poor people can boost market expansion. In addition, growing adoption of advanced technologies in construction to reduce construction costs is likely to contribute significantly to market growth. Moreover, increasing investments by local market players to develop luxury and world class properties for consumers can spur growth of the market. For instance, the 42 building constructed by a team of well-known builders including Mani Group, Salarpuria Sattva Group, and Alcove Realty is likely to offer ultra-luxury homes. The building is located at the center of the city offering easy connectivity to consumers. In addition, it is environmentally-friendly as it is equipped with solar panels, electrical car charging facility, and sewage treatment plant. Moreover, this green building offers panoramic view to residents owing to its iconic landmarks and architecture. Residents can feel safe as the building is earthquake- and fire-resistant. Similarly, Mumbai-based developer Phoenix Mills, launched a luxury residential project called Fountainhead in Pune. The project offers luxury penthouses, 3 bedroom pool villas, and 4 bedroom sea view pool villas on sale.
Some of the leading companies operating in the India housing market are DLF, Unitech real estate, Supertech, Omaxe, and Oberoi Realty.
Research Support Specialist, USA