The rise and fall of rates of interest have been a common trend throughout the history of real estate in India. The sector has been evolving over the decades with more and more investors analyzing the present real estate scenario.

As a home buyer or property investor, it is practical to be well-informed about the current situation of the real estate market and the factors that might affect it. Here are a few real estate trends that you should know.   

 Rising interest rates

The interest rates rise when the sector experiences some loss. Increase in supply of bonds can raise the interest rates significantly, resulting in limited cash flow in the industry. The most common factor for the rising interest rates is inflation. In fact, it would be logical to state that inflation and rising interest rates go together, as seen in 2018, when the Indian real-estate sector almost crashed due to the irrational increase in the prices of properties.

Even though the sector has managed to pull itself out of the situation, the repercussions are still causing the interest rates to go high.

Affordable housing

Though the previous point states that interest rates are increasing, real estate has found a middle ground between the affordable low-cost housing and high standard international standards.

The appearance of economical luxury housing has transpired an entirely new perspective in the market with more investors looking for affordable international standards. With more people moving to the suburbs now, and since middle-income groups can afford premium housing, real estate companies are coming up with new ways to satisfy their customers.     

Government Initiatives

Since real estate plays a significant role in the economy of the country, the government implements new policies and laws to boost its growth. Both growth and downfall impact the economy since its the primary revenue-generating sector of the country, the government is always preparing new schemes that would encourage more investors to contribute to the sector.

Reserve Bank Of India (RBI) has given banks the freedom to plan out new schemes that might be beneficial for the real estate sector. The funds for housing have been increased from US $183.4 million to $215.8 million. Similarly, funds allocated for Urban Development was increased from $660.3 million to 1.17 billion. These are some of the policies that were implemented recently for raising the cash flow into the sector.

Technology curve

Technology is taking over the real estate sector, globally. It erupted with affordable housing properties and with the increase in the number of people looking for luxury houses at favorable prices. Home security systems and smart home features are already providing various conveniences to its residents. Home AI assistants and robotics are already starting to make their way into our homes.

It is obvious that real-estate builders would want to integrate their properties with the upcoming tech. Amenities like automated voice locks, air purifier, temperature control, etc. would become the essential minimum requirement for affordable luxury housing.

These are some of the major trends that have influenced the real estate market throughout the year. Knowing them would probably help you in deciding when and how you should invest in it, without overpaying or suffering a loss.