What is the future home market in India?
What are the key home market trends in India and how will the future market impact future home buyers?
The key home buyers are the millennials and the house-buying demographic.
India has been the best-performing market in terms of the growth of the house buying population.
As per data from the World Bank, India’s house-buyers are projected to grow from 9.4% in 2022 to 12.5% in 2024, which is a remarkable growth rate.
The biggest contributor to this growth is the growth in the number of millennials, who are now a key demographic for India’s overall population.
The growth in millennials has also resulted in a big jump in the percentage of Indian millennials who are buying houses.
This is likely to continue, as millennials have been making their way to the country in droves in recent years.
India’s population of millennials is expected to grow by more than 5 million people in 2024.
The main drivers of this growth in house prices in India are the rise in real estate prices and a rise in mortgage interest rates.
Real estate prices in Indian cities like Mumbai and Chennai have increased at an impressive rate.
This has been attributed to the rising demand for housing in the country.
India is expected by the World Development Indicators to see an increase in population by 3.4 million people over the next five years.
The rate of mortgage interest on new houses has also been increasing.
Interest rates have been on the rise due to the government’s efforts to revive the housing market.
The median mortgage interest rate in India in 2024 was around 4.5%, compared to 5.4%, according to a report by Deloitte Touche Tohmatsu India.
The median mortgage rates have increased by over 15% in the past five years, which has resulted in rising prices and lower yields.
As a result, home prices in the nation have been increasing by double digit percentage points.
The rise in house price is also driven by a rising middle class.
India today has a middle class of around 21 million people.
As the middle class grows, the demand for properties is increasing.
The number of households in India with income of Rs 1 crore or above increased by 27% from 2015 to 2024, according to the Indian Council for Science Research.
This is an important trend for home buyers, as they are the ones who will be driving the house price inflation in the future.
A large number of people are now renting and making payments on their houses to pay the mortgage.
This will also make home prices more affordable.
The real estate market is also witnessing a boom in the private sector.
The private sector has witnessed a massive rise in growth since the early 2000s.
This boom is now in full swing, with many companies going public and investing in real-estate development.
The growth of this sector is projected to reach over $7 trillion by 2022.