How will the housing market in 2023 differ from the market in 2008 ?

The dreaded 2008 recession was a bad time for the Indian Real Estate Industry, given the global landscape that has taken a hit as a whole. While experts and economists are hinting that a similar recession might hit the global economy in 2023, it is important to analyze whether the situation will be similar to 2008, particularly if you are looking to invest in India’s real estate market.

WHAT’S HAPPENING IN THE HOUSING MARKET?

In 2008, the Indian housing market was impacted by the global financial crisis, which led to a slowdown in demand and a decline in property prices. However, the market recovered in subsequent years, and property prices have continued to rise in many areas.

So how do Property Rates and Trends in India look now? The Indian housing market has seen significant growth over the past decade, driven by factors such as rising income levels, urbanization, and favorable government policies such as the Pradhan Mantri Awas Yojana (PMAY).

However, the market has also faced challenges such as oversupply in some areas, high levels of unsold inventory, and limited availability of affordable housing- which have all been combatted now, in the post-pandemic period.

WILL THE HOUSING MARKET CRASH?

The answer is a resounding, “NO”. The fortitude of the Indian economy in the face of international challenges is largely reflected in the Indian real estate market, and here are the reasons why we won’t be seeing a crash.

A Growing Industry

In the upcoming years, it is anticipated that the market for real estate will grow and contribute a bigger portion of India’s GDP. Growth levelers are equal, and momentum will most likely continue to gain strength. The global real estate market is in a slump, and sales are down, but the Indian real estate market is a good example of how to weather turbulent times and show signs of consistent growth in the years to come.

Factors Of Success

Strong economic growth, favorable demographics, and an increase in foreign investment are some of the factors influencing this success. In recent years, India’s economy has grown rapidly, on average by about 7% annually. Due to this, there is now a greater demand for housing, both from first-time buyers and homeowners looking to upgrade.

India’s Urban Youth

In India, only a small portion of the population owns a home, but despite India’s growing urbanization, housing demand has remained strong. In 2023, this is anticipated to reach new heights. There is a strong demand for housing properties, as evidenced by the fact that the supply of properties that are ready to move into is almost gone and that customers are now only receiving options in projects that are still under construction. India has the distinct benefit of a sizable and young labor force, has improved its standing in the global business environment ranking, and is still a desirable market for international investors.

Foreign Investments

Due to the potential for long-term growth, a number of significant foreign investors have recently poured money into the nation’s real estate market. This has supported market stability by offsetting any slowdown in domestic demand.

WHAT’S DIFFERENT FROM THE 2008 RECESSION?

In 2008, the global financial crisis had a significant impact on the Indian economy and the real estate market, leading to a decline in demand, a slowdown in construction activity, and a decrease in property prices.

However, the Indian real estate market has since recovered, and there are some key differences between the market conditions then and now.

  1. Firstly, the Indian real estate market has seen increased demand in recent years, driven by factors such as urbanization, rising incomes, and government policies aimed at promoting affordable housing. While there have been some challenges in certain segments of the market, overall demand remains strong.
  2.  Secondly, there has been a significant increase in the supply of affordable housing in recent years, thanks to initiatives such as the Pradhan Mantri Awas Yojana (PMAY) and the Real Estate (Regulation and Development) Act, 2016 (RERA). These measures have helped to boost investor confidence and improve transparency in the real estate sector.
  3. Thirdly, there has been a trend towards consolidation in the real estate sector, with larger developers acquiring smaller players and taking over stalled projects. This has helped to reduce the risk of unsold inventory and boost investor confidence.

Conclusion

Given all of the above factors and emerging trends in real estate in 2023, everything points to the direction that the Indian real estate market will not be taking much of a hit this year, which makes it a good time to consider investing in. This said market speculations are often subjected to changes, and it is important for investors to conduct thorough research and analysis before making any investment decisions.

Make Your Investment Today!

Given that the Indian real estate industry is looking strong in 2023, why not make the best property investment with one of the best development groups in the country? With numerous impressive commercial and residential projects located in the country’s most investable cities and regions, we, at Raichandani Group are an investor favorite due to our well-crafted units, smart locations, and impressive specifications.

So go ahead and make the smart move today! Invest in a Raichandani space and reap excellent rewards!