Indian real estate likely to witness positive momentums in FY23

Indian real estate is likely to witness strong and positive momentums in FY 23, backed by a solid structural foundation, gain in demand, and lowered home loan rates. FY 23 will be the fiscal year the industry has been wishing for a long time. The upswing in the real estate market will also arise from a favourable economic outlook. Most of the rating agencies have assessed the development of India in the comfortable range of 8% to 9%. The increase in commercial activities alongside an increase in the job market and income levels will naturally translate into grown housing demand. Market bounce back is also the progression of the gradual recovery witnessed in the past six to nine months. After softened demand due to the Covid-19 pandemic, the realty market has been on an upswing since the second half of the prior year. The iterations of repo and reverse rate cuts by the government resulted in liquidity injection, thereby assisting in accelerated development. The developer fraternity also played its part by introducing a host of attractive schemes, attracting the fence-sitters, and offering the market a positive push. In FY 23, the development juggernaut will continue. The real estate in Tier 2 and 3 markets will also rise fast. Sustained infrastructure investments, improved connectivity, and better job opportunities will be fuelling real estate in smaller cities and towns in the country. Already metro and suburban transit systems are taking shape in cities which will increase real estate demand. New airports are constructed under Ude Desh ka Aam Naagrik (UDAN), which will foster regional economic growth and support the real estate sector considerably. After taking a backseat over the last two years, office leasing will witness incremental growth, mainly from tech, IT, and retail firms. Already large tech firms have closed big-ticket size office lease deals. E-commerce and third party logistic enterprises will continue to invest money into warehousing, making it one of the fastest-growing categories in the commercial realty sector. Data centre investments will also soar. Big tech giants such as Google and Amazon are increasing investments in the Indian data centre space, drawn by its long-term potential. Image Source Also read: Indian real estate market poises to touch Rs 65,000 cr by 2024