Vishal Raheja, MD, InvestoXpert.com said, one of the major challenges for the real estate market in the upcoming year of 2023 is going to be the cooldown effect of the US recession.
As the nation continues its steady march towards progress, driven by increased government spending, private investment in manufacturing and geopolitical upside for India, real estate industry experts predict that 2023 will be a turning point for the Indian real estate market. It will be an important year.
Vishal Raheja, MD, InvestoXpert.com said, One of the major challenges for the real estate market in the upcoming year of 2023 is going to be the cooling effect of the US recession.
One of the major challenges will be to deal with the fallout from the low income flow in the IT/ITES sector. Since this is a big part, we expect it to be a big challenge that we will face. However, this is not to say that there will be a drastic fall in overall demand in the market, he added.
Aman Gupta, director, RPS Group, said it can be difficult to accept the major implications of geopolitical risks associated with real estate. These global and domestic risks typically manifest as volatility resulting from uncertainty about future impact on sectors of the economy and financial industry.
“It is difficult to isolate and measure controversies such as 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 norms,” said Aman Gupta.
According to Ashish Agarwal, director of Spacemantra, the cost of construction materials has increased dramatically, including key input materials such as cement and steel.
As manufacturing costs increase, they will be forced to raise prices and pass the cost on to end users. The increase in property prices is expected to increase rental prices as well, he added.
“The real estate market will perform well in 2023 as we can already see that the economy will strengthen, local activity will resume, and the government will take action to help Tier 2 cities expand even more. Tier – 2 cities are expected to gain even greater attractiveness as desirable places to live in the coming year as a result of increased economic activity and employment prospects. Consumer confidence is still high, and we anticipate that the government's proposed The innovative initiatives will benefit all market participants including home buyers, developers, landlords and tenants," said Siraj Sayyed, Director, Arete Group.
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