Investments in real estate: Since 2010, the real estate industry has changed dramatically, particularly in areas such as Pune, Bengaluru, Hyderabad, and Delhi-NCR. However, due to a lack of sufficient land banks and high costs, these cities are approaching saturation. As a result, many emerging towns are expected to become popular tourist destinations in the coming years. The next phase of real estate growth will be projected by a number of upcoming smart cities.
The future of real estate appears bright
The future of real estate appears bright, given that the government’s “Smart City 2.0 programme” will begin across the country. Infrastructure projects like Bharatmala and Sagarmala, as well as the UDAN scheme’s construction of new airports, and strong commercial space absorption, would boost the residential market in cities other than Delhi, Mumbai, and Bengaluru.
Government’s Sagarmala and Bharatmala projects
The government’s Sagarmala and Bharatmala projects aim to improve logistics, highways, and roads infrastructure. The projects will help India develop critical economic corridors. These efforts would benefit Kochi, Agra, Kota, Nagpur, Pune, Indore, Vizag, and other coastal cities. The government’s goal of constructing 100 airports will benefit cities and towns in the North-East as well.
Cities that are business hubs will continue to drive the country’s economic growth and attract investment. Srinagar and Jammu, Agra, Patna, Bhubaneshwar, and Vijayawada, as well as business capitals, are likely to be viable markets. The major markets would be Shimla and Dehradun, with the Jewar International Airport boosting Greater Noida’s real estate industry. Residential destinations in Madhya Pradesh’s Indore and Jaipur, a popular industrial hub, have great potential. Kota will lead the student living/housing market due to its excellent educational infrastructure. Surat, Rajkot, Ahmedabad, Nashik, Raipur, Shillong, Mysore, and Coimbatore should experience high real estate growth.
The real estate developers and consultants were undeterred even by Covid. While Covid made things difficult for the real estate industry in the beginning, industry players took advantage of the situation and launched “Once in a lifetime” schemes to attract customers. The industry experienced an increase in business momentum during the first two quarters of Covid Phase 1. Real estate firms were able to sell off their stalled projects. By the end of the year, many companies plan to launch new projects. Investments in real estate tend to increase by a factor of two during the festival season.
Despite the fact that the government’s smart cities require significant urban development, real estate prices and values in these cities have begun to rise.
New real estate models
New real estate models, such as shared accommodation, are expected to emerge over the next decade, with greater segmentation in terms of student housing and work/job-related shared lodging. According to the report, “new rental rules should make this an attractive investment opportunity for investors”. Commercial real estate will increase in cities where residential buildings can take place. Commercial and residential real estate development will spur advancement in the healthcare, education, and hospitality industries. The logistics and storage industries will expand in cities powered by the Sagarmala and Bharatmala programmes.
As a result, Investments in real estate can be a very good investment option as well as a good way to own a home and settle down in these cities. This is one of the best times to invest in housing real estate in order to maximise future returns.