| |MAY 202119THOUGHT CENTRALR eal estate is one of the fastest growing sectors around the world. According to IBEF, by 2040, the real estate market is expected to grow to US$9.30 billion from US$ 1.72 billion in 2019.The growth is complemented by the rise in income and constant desire to buy better residential, commercial and hospitality spaces. Talking about luxury real estate, over the last couple of years, the segment has witnessed significant growth in demand due to a rise in the number of high net worth individuals. According to the Wealth Report 2021 from Knight Frank, at present, India is home to 6,884 ultra-high net worth individuals and 113 billionaires. The number is expected to grow to 11,198, a rise of 63% in the next five years. These statistics indicate the potential, luxury housing holds.With a sudden wave of relocations and low mortgage rates, the real estate market was on fire in 2020. Moving forward, various trends are expected to drive the real estate market in 2021. Let's have a look at them especially for the luxury real estate segment.Real Estate Market in 2020The commercial and housing market is considered as a signifi-cant indicator of economic growth by economists. From the investor point of view, it is considered as a healthy market for investment - obvious from real estate signage all over the neighbourhood. The real estate market among many others was hard hit by the pandemic in 2020. Though there was a mass exodus of people amidst lockdown and work from home, the prices hit a low due to layoffs, salary cuts and shut down businesses. But the government has been quite pro active in reviving the market and helping the people seeking to invest. Some important initiatives by the government include higher tax breaks, lower interest rates on home loans and a stress fund of Rs 25,000 crore for stuck projects. Also, the market started recovering in the second half of 2020. As per PropTuger.com, developers sold 35,132 units during Jul-Sep 2020, a significant increase of 85% from the previous quarter.Further, with impressive growth in online demand, there has been increasing digitisation of real estate. Online booking platforms, virtual tours, drone shoots and video calls for project short listing are common trends among buyers and developers. It can be said that 2020 was a year of revolutionary change in the real estate market as technology continues to play an influential role in property buying, registration and renting. Talking about millennials, their values and preferences continue to evolve and when it comes to investing in property especially residential, they want luxury house ownership. This is because they prefer proximity to nightlife and entertainment and also, the ability to socialise in communal areas.LUXURY REAL ESTATE TRENDS TO BE OBSERVED THIS YEARBy Nishit Jalan, CEO, Grovy India
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