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As we pace ahead in 2024, the housing market in India registered more number of property purchases. Many deals were closed even when the interest rates and the asking prices were the highest in 6 years. But, market experts say that the demand will soar high at a gradual pace in 2024 and beyond. So, in this article, we shall cover why people are considering property investment in 2024.
Predicting the future of the real estate market in India can be tough. But, there are numerous trends and factors that offer a glimpse of what you can expect ahead. Let’s check these a bit more in detail.
Infrastructure Supporting Growth
There seems to be a different relationship between the real estate sector and infrastructure development. For instance, the price of properties is increasing consistently due to many upcoming connectivity projects. These include the development of the Navi Mumbai International Airport, the Metro Line, and the Mumbai Trans Harbour Link. Moreover, the officials are directing the investment towards railways. This will help enhance transportation and the nation’s competitiveness.
Change in the consumer’s profile
As time passes by, the change in customers’ profiles is transforming the real estate market trends. Certain economic factors, like stability in the interest rates, and rising per capita income, are driving individuals to purchase properties. In fact, they prefer buying properties than considering a house on rent. Further ahead, fractional ownership is becoming popular. This is helping to reduce the financial burden and diversify the investment. Individuals are also planning to make an investment due to the recent amendments of the SEBI. Fractional ownership is also becoming easier due to asset tokenization.
Strong global standing
People will perceive a growth in the commercial segment even when geopolitical conflicts are prominent. Tech-enabled sectors will also drive demand growth with the expansion of its operations. Presently, India is known for global shared services, which is likely to reach 1900 GCCs by 2025. Some trends, like supply chain diversification, and enhanced manufacturing output, will also boost the commercial real estate sector. People will also prefer property investment in 2024 under asset classes like data centers, and warehouses. This is due to the growth of institutional investments by 27 percent.
Adoption of Technology
With the surge in digitization, PropTech will make buying and selling properties more efficient. In addition, as technology evolves, it will enhance the customer’s experience. Through an analysis of complex metrics, consumers can move ahead in making data-driven decisions. On the other hand, property management will be optimized, which will reduce the operational costs. People will also perceive automation in marketing and managing finance.
Sustainability will be the focus
Over a period of time, people will observe a significant adoption of the ESG practices. According to a report, more than 50 percent of RE stakeholders will have considered sustainability. This trend is promoting the construction of sustainable buildings. As a result, it will lead to resource efficiency and enhanced well-being. Moving ahead, with an improvement in green financing, sustainability is soon going to be one of the trends.
In today’s era, many individuals are thinking whether 2024 is a year for investing in real estate. But, as the real estate industry keeps evolving, it’s necessary to understand the benefits. These will help you decide whether you should invest.
Appreciation
The potential for appreciation is one of the main benefits of property investment in 2024. As time passes away, the property’s value is bound to increase significantly. Hence, with favorable economic conditions, the investment will appreciate to a great extent. This will, eventually, enhance the long-term value.
Hedge Against Inflation
Real estate is currently perceived as a hedge against inflation. Most of the time, property values will increase when compared to inflation. Hence, it’s a smart decision when you consider investing in real estate. This will secure your assets from the effects of inflation. You will also be happy to know that your decision can safeguard the purchasing power of the investment. If you’re unsure about the best places to invest in 2024, then conduct an online research.
Diversification
When you make up your mind to invest in high-growth property markets, it can help to diversify your portfolio. Once the funds are allocated in diverse asset classes, it can help spread the risk. Besides, you will not face any consequences due to market volatility. As the investment is not quite related to conventional financial instruments, it helps a better option. You will also be in a better position to maintain a well-balanced portfolio.
Tax Benefits
Due to several tax advantages, people can consider real estate investment as a better option. For instance, if you take a loan for buying a property, then you can claim a deduction in tax. You may also have to pay less interest during loan repayment from the income up to a limit of Rs. 2 lakhs. Besides deduction for principal repayment, you can claim charges related to stamp duty and registration through Section 80C. Additionally, you will also come across a few investment structures that can help boost returns and reduce tax liabilities. These are 1031 exchanges and real estate investment trusts (REITs).
Significant Urbanization
Regions across India are now experiencing swift urbanization. This situation is due to individuals settling in areas for better employment opportunities. So, you will perceive more demand for residential properties and commercial spaces. The trend can also be observed in the top emerging markets of 2024, where swift urban growth is leading to many upcoming projects.
Apart from the benefits stated above, schemes like the Pradhan Mantri Awas Yojana (PMAY) are aiming to offer affordable housing. Investment opportunities are also likely to be created with diverse infrastructure development projects. Way ahead, reforms like the Real Estate (Regulation and Development) Act (RERA) have enhanced accountability and transparency. In contrast, the Goods and Services Tax (GST) has also streamlined the process of taxation. These aspects are driving people to make property investments in 2024.
To sum everything up, there are many benefits of investing in the real estate domain this year. People consider this an investment choice due to property appreciation, tax benefits, government initiatives, and a hedge against inflation. But, before you take a step ahead, there are risks involved. While these can arise due to high upfront costs, it can also be due to market fluctuations. So, when you’re making a decision, ensure that you balance the risks with the benefits.
If you’re planning to buy a second house, why not get in touch with Goodbrick Realty? With a wealth of experience, we understand what families desire for an indoor space. This enables our team to blend comfort with functionality for a great living experience.
