Real estate business has seen a significant shift in the last ten years since 2010, particularly in regions such as Pune,kolkata,Bengaluru, Hyderabad and Delhi-NCR. These cities, however, are nearing saturation due to lack of sufficient land banks and excessive costs. As a result, numerous rising towns are projected to become sought-after destinations in the next few years.Various upcoming smart cities will project the next phase of growth in real estate.
Given that the government's "Smart City 2.0 programme" is slated to start across the country, the future of real estate seems bright. Infrastructure initiatives such as Bharatmala and Sagarmala, as well as the UDAN scheme's building of new airports, strong absorption of commercial spaces would boost the residential market in cities other than Delhi, Mumbai, and Bengaluru.
The government's Sagarmala and Bharatmala projects, aim to improve infrastructure in terms of logistics, motorways, and roads. The projects are aimed at creating critical economic corridors in India. Kochi, Agra, Kota, Nagpur, Pune, Indore, Vizag, and other coastal towns would benefit from these efforts. The government's aim of building 100 airports will give a boost to cities and towns in North-East too.
Cities that are business capitals, will continue to produce good economic growth for the country and attract investment. Other than business capitals, cities like Srinagar and Jammu, Agra, Patna, Bhubaneshwar, and Vijayawada are expected to emerge as potentially viable markets. Shimla and Dehradun would be among the major markets, while the Jewar International Airport will bolster Greater Noida's real estate industry. Indore, which serves as a commercial and educational centre for Madhya Pradesh and Jaipur, which is home to a large number of industrial companies, should become a popular residential destination. Because of its excellent educational infrastructure, Kota will lead the student living housing market. Surat, Rajkot, Ahmedabad, Nashik, Raipur, Shillong, Mysore, and Coimbatore are more cities that are expected to become popular real estate destinations.
Even Covid could not deter the real estate developers and consultants. While the initial phase of Covid made things difficult for real estate business, industry players turned around the Covid situation in their favor and launched ‘Once in a lifetime’ schemes to attract consumers. Within the first two quarters of Covid Phase 1, the industry witnessed increase in business momentum. Real-estate companies have been able to sell off their stalled projects. Many companies are looking at launching new projects by the end of this year. The festival season is expected to boost the consumer demand and supply two-fold.
Even though Government’s smart cities need substantial urban development, these cities have already started witnessing growth in price and value for their real estate properties.
Over the next decade, new real estate models such as ‘Shared accommodation’ are anticipated to emerge, with greater segmentation in terms of student housing and work job-related shared lodging. “Demand for rental homes will increase as new rental rules make this segment a potential investment opportunity for investors adding more muscle to the real-estate sector. In cities where residential buildings are being constructed, commercial real estate will also increase. The progress of commercial and residential real estate will, in turn, stimulate advancement in the healthcare, education, and hospitality sectors. In cities powered by the Sagarmala and Bharatmala programmes, the logistics and storage industries will grow as well.
As a result, investing in real estate can be very beneficial in terms of investment option and or for owning a property and settling down in these cities. This is one of the greatest times to invest in housing real estate for the best of returns in future.
By LNN (Liyaans News Network)