With the arrival of 2023, the disorder caused by the Covid-19 pandemic has subsided to some extent. Work in almost every industry had come to a standstill, affecting the business and people losing their jobs. Likewise, the construction of real estate projects in cities was put on hold due to the lack of funds and workforce who went back to their villages during the lockdown.
After the completion of several months of lockdown in the entire country, the situation at present seems much better. Observing consumer behaviour, the industry experts believe that 2023 is going to be the year of affordable housing in the real estate business.
What plans do realty developers have in 2023?
Residential segments such as affordable homes will remain a prime concern for developers. The price-sensitive and mid-income buyers are most likely to buy homes from the affordable segment. In fact, the choice for affordable housing is a continuation of the trend from 2020.
More than 80% of the new residential launches in the sub ₹1 crore category were witnessed last year and the same range of properties will be launched this year too. Moreover, the realty developers are positive and expect an improvement in sales across all housing segments in 2023.
On the other hand, the government has been constantly doing its bit to push the affordable housing segment and it has further helped in boosting the confidence of the developers. The latest announcement of Union Budget, for instance, had Finance Minister Smt. Nirmala Sitharaman stating that the government sees 'housing for all' and 'affordable housing' as priority areas to fulfill the vision of providing a house for all the citizens. During the July 2019 Budget, the Finance Minister has announced an additional deduction of interest amounting to ₹ 1.5 lakh for a loan taken to purchase an affordable house. She once again during the Union Budget 2023-24 presentation proposed to extend the eligibility of this deduction by one more year, to March 31 2022. The additional deduction of ₹ 1.5 lakh shall therefore be available for loans taken up till March 31, 2022, for the purchase of an affordable house.
Consumer behaviour towards the housing market in 2023
During the fourth quarter of FY2023-24, the housing market started showing signs of recovery with new launches, and sales across the seven key cities witnessing a significant jump.
The Covid-19 cases have reduced and many offices have reopened which has enabled the migrant millennial workforce to move back to the major cities. Alongside, students are gradually moving back as the education institutes have started resuming their physical classes. Hence, the rental housing market is likely to go up to its normal state by the end of 2023.
The pandemic has brought a sense of awareness towards a healthy lifestyle among all. The amenities and facilities that promote health and wellness will be some of the top criteria while buying a home. Therefore, developers should be proactive in providing such features to the buyers. A home with fitness facilities, green open spaces, safety features, medical support, and special features for senior citizens is going to be the first choice.
Also Read: Affordability Calculator