As the nation continues its steady march toward progress, fueled by government spending, private investments in manufacturing, and the geopolitical edge for India, real estate industry experts anticipate that 2023 will be a crucial year for the Indian real estate market.
One of the major challenges being faced for the real estate market in the upcoming year of 2023 is going to be the cooldown effect of the US recession, said Vishal Raheja, MD, InvestoXpert.com.
One of the major challenges will be handling the fallout from reduced income flows in the IT/ITES sector. Since it makes up a sizable chunk, we expect it to be a major challenge that we’ll be facing. However, it’s not to say that the entire demand in the market will take a huge hit, he added.
Aman Gupta, Director, RPS Group said that acknowledging the major ramifications of geopolitical risks associated with real estate can be difficult to pin down. These global and domestic risks usually manifest as volatility as a result of uncertainty about the future impact on sectors of the economy and financial industry.
“It is difficult to isolate and measure a dispute like the war in Ukraine, additional production shutdowns due to rising COVID rates of infection in China, or local politics covering rent regulations and sustainable development and restoration criteria,” said Aman Gupta.
According to Ashish Aggarwal, Director, SpaceMantra, the cost of construction materials has risen dramatically, including key input materials such as cement and steel.
As construction costs rise, they will be forced to raise prices and pass the cost on to end users. The increased property prices are expected to lead to an increase in rental prices as well, he added.
“The real estate market will do well in 2023 since we can already see that the economy will be robust, local activity will resume, and the government will take action to help Tier 2 cities expand even more. Tier-2 cities are anticipated to gain even more traction as desirable places to reside in the upcoming year as a result of increasing economic activity and employment prospects. Consumer confidence is still high, and we anticipate that the government’s proposed sector-specific initiatives will benefit all market participants, including homebuyers, developers, landowners, and tenants,” said Siraj Saiyed, Director, Arete Group.
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