Real Estate Housing Market Forecast for 2024

Indian real estate has always been one of the most active driving forces in India’s economy. As of March 2024, the value of the sector has been estimated at an impressive $477 billion, which amounts to about 7.3% of India's overall GDP. Over the next few decades, the sector is predicted to experience an unprecedented growth rate, with an estimated value of $5.8 trillion by 2047, contributing a remarkable 15.5% to India's GDP. This projection is proof of the enormous potential of the Indian real estate market, which may become a major driving force behind the country's economic growth in the coming years. 

However, as with any other sector that plays a crucial role in the economy, the real estate sector can be unpredictable at times. There are multiple factors that will shape the real estate scenario in 2024 and determine the future of Indian real estate.

Factors that will determine the real estate housing market in 2024

1. Economic Conditions

Factors such as GDP growth, employment rates, and inflation can impact people's ability to buy homes and invest in real estate. As mentioned earlier, a higher GDP translates to a healthy real estate housing market, while a good employment rate means people will have steady incomes and purchasing power to buy a property. However, predictions may not always be accurate. Inflation, on the other hand, can make it difficult for people to afford to buy property. So, it is largely based on the economic conditions to predict the housing market in 2024. 

2. Interest Rates

One factor affecting the real estate market in India is the fluctuations in interest rates on home loans. These fluctuations impact demand and pricing in the Indian housing market. An increase in interest rates causes the overall borrowing cost, which, in turn, causes a decrease in the demand for residential property. On the contrary, if interest rates fall, the cost of borrowing decreases, causing an increase in demand for homes. This can, in turn, affect the price of homes in the market. The rise or fall in interest rates in residential real estate is unpredictable; thus, predicting the real estate market trends based on interest rate fluctuation is slightly difficult. 

3. Supply and Demand

The availability of residential spaces will also significantly impact the real estate housing market in 2024. Similarly, the economic condition will determine the purchase potential of homebuyers. If the supply of residential real estate is low and demand is high, the property prices will increase, and vice versa. 

4. Government Initiatives

Every now and then, the government introduces zoning laws, property tax benefits and incentives, and housing schemes to keep buying a house favourable for everyone. However, there are times when the interest rates on home loans increase the overall cost of the property, which affects the buying power of a homebuyer. Thus, fluctuations in interest rates can have a significant impact on the housing market, affecting both demand and pricing.

5. Innovation of Real Estate Technology

Innovation is a constant process, and in recent years, real estate has been witnessing a lot of technological innovations such as virtual reality, smart homes, property management software, CRM software, drones, and so on. These innovations are going to impact the property prices in coming years. 

Tips for Navigating the 2024 Housing Market

For Buyers

1. Try and get pre-approved loan offers.
2. Be open to exploring different neighbourhoods or property types to find the best property based on your budget.
3. Research market trends to make informed decisions.

For Sellers

1. Price your real estate offerings competitively based on market conditions.
2. Make sure your property looks its best to attract potential buyers.
3. Negotiate terms and concessions efficiently to close deals in a competitive market.

For Investors

1. Conduct thorough market research before investing for maximum profits.
2. Consider diversifying your real estate investments.
3. Maintain a patient approach, focusing on sustainable growth and cash flow.

The Indian housing market has always been unpredictable, yet it is the most preferred investment vehicle. Whether you are an investor interested in putting your money into Indian real estate or a home buyer searching for a good deal, it's important to stay updated on real estate in India. You can do this by following real estate portals, blogs, the government website RERA (Real Estate Regulatory Authority), and the Ministry of Housing and Urban Affairs.

Frequently Asked Questions

1. Which city in India is booming in real estate?

Ans: Several cities are showcasing significant growth trajectories in the real estate sector, such as Bengaluru, Mumbai, Pune, Kolkata, and Delhi NCR.

2. Will property prices increase in 2024?

Ans: Predicting the prices of property in India in 2024 is challenging because multiple factors influence property prices, such as economic conditions, demand and supply dynamics, real estate market trends, etc.