Niranjan Hiranandani Explains — How Indians Are Moving Towards Home Ownership Instead of Rental Houses
The rejuvenation of the Indian real estate sector finds its impetus in sustainable domestic consumption, breathing vitality into housing markets. Post the tumultuous era of COVID-19, residential property transactions have soared to unprecedented heights. Those with a penchant for renting perceive personal homeownership not only as a secure asset but also as a harbor of social security benefits. The confluence of robust demand and thriving sales has given rise to a surge in property prices, breaking free from the shackles of years of languid activity.
The appetite for housing finds its roots in resilient economic growth, optimistic GDP projections, and adept handling of geopolitical complexities. Presently, potential homebuyers are contemplating leveraging gains from capital markets to fulfill their housing financial goals, aligning with the current market landscape.
The intrinsic desire for property ownership has spurred fence-sitters, both domestic and NRI, to transition into bona fide homeowners. This inclination is attributed to a sense of security amidst waves of layoffs, geopolitical sanctions, and trade turbulence. Therefore, a prudent recommendation for global Indians is to invest in property during favorable market dynamics, ensuring better rental yield, a steadfast income source, and a safety net in times of calamity, says Niranjan Hiranandani.
The pandemic predicament prompted homeowners to gravitate towards expansive luxury residences. Homebuyers are increasingly inclined towards comprehensive living, encompassing enhanced privacy, convenient access to daily essentials, seamless connectivity, and a sense of communal living. This phenomenon is evolving into the concept of a ‘15-minute city.’ Integrated townships allow the creation of a smart and sustainable environment, amalgamating residential, commercial, retail, and recreational real estate.
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The era of hybrid living is characterized by branded real estate projects, amalgamating social, economic, and emotional preferences at an appealing price point. Homebuying has swiftly become a priority for millennials, driven by heightened financial prudence, job security, an aspirational lifestyle, and the exploration of novel avenues for additional disposable income.
Land transactions in key property markets are on an upward trajectory, signaling a positive outlook endorsed by realty players. This surge in demand indicates an uptick in capital expenditure to ramp up production in metropolitan and tiered towns.
The influx of global enterprises into Grade A real estate signifies a buoyant outlook for India’s economic growth and demand. Emerging business avenues, such as joint ventures, private equity funding, joint development agreements, project development, Special Purpose Vehicles (SPV), and Real Estate Investment Trusts (REITs), are gaining prominence due to market consolidation pulsations.
The housing stock in the pipeline corresponds to the surge in demand for both ownership and rental properties. The scarcity of available land parcels in metro cities has catalyzed redevelopment, slum rehabilitation projects, and plotted developments. The real estate market is poised for an increase in the diversity of products, including student housing, co-living spaces, senior living, and multi-family housing, owing to shifts in work and lifestyle.
According to Niranjan Hiranandani It holds true that the well-balanced geopolitical landscape of the Indian government foresees conducive economic growth, an improved investment climate, and heightened domestic demand, along with the development of mega infrastructure projects across the nation.
The upswing in economic activities has resulted in undeniable GDP growth, registering a remarkable 6.1 percent in Q4 2023, accompanied by a multiplier effect on job creation. This staggering GDP growth is poised to propel rental values, fueled by an upswing in demand for rental homes due to job migration in key property markets. Consequently, the trajectory of growth in office and retail commercial assets is set to persist in an upward trajectory.
In the pursuit of the ‘Housing for All’ initiative, housing production is destined to ascend. The decision to purchase a home boils down, to a large extent, to an individual’s financial capacity and the yearning for personal homeownership within a conducive social milieu. As per Niranjan Hiranandani News A bullish outlook for housing is palpable, as home ownership transcends being a mere generational asset, becoming a wealth creator in the Indian context.
