India’s rising population will increase demand in the real estate sector

The world is fast approaching a population of 800 crores and a sizeable number of this population resides in India. The 2023 State of World Population report, released by the United Nations Population Fund (UNFPA), estimated that India will overtake China as the most populous country in the world. India’s population is predicted to reach 142.86 crore against China’s 142.57 crore.

This growth can have a significant impact on India’s real estate sector. While population anxieties have seeped in, it has also unveiled numerous opportunities for the country. A surge in demand for housing and infrastructure is anticipated while there is a strong belief that the government’s focus on the sector will help meet the demand.

Increasing Requirement For Affordable Housing

One of the direct impacts on real estate is the increasing requirement for affordable housing and infrastructure. In 2022 itself, we saw yearly residential sales hit a decade high with over 215,000 units recorded. This will only continue. In addition, government incentives like Pradhan Mantri Awas Yojna (PMAY) etc., will continue to help meet the growing demand and provide solutions to the masses.

The population growth also highlights India’s need to invest in its urban infrastructure. The growth rate will put a strain on existing infrastructure, be it roads, transport, or any other facility. Our infrastructure will need to be upgraded and expanded, which again presents a significant opportunity for the construction sector to invest in new infrastructure projects.

Experts within the sector also anticipate that population pressure may increase the possibility of opening of land parcels in the peripheral locations of urban centres. With commensurate focus on developing the infrastructure and connectivity in these peripheral areas, population growth can be balanced and its adverse impact on existing urban land banks may be addressed.

Need For Sustainable Development Practices

Additionally, sustainable development practices can help the sector reduce its environmental impact and reduce costs in the long run.

Nearly 40 percent of global carbon dioxide emissions come from the real estate sector. In order to reduce this, developers should consider incorporating sustainable design principles and material, renewable energy solutions, and green building technologies into their projects.

Sustainable alternatives in the construction lifecycle are attracting environmentally conscious tenants and investors, making green premium a reality.

Technology To Become Part Of  Business Process

Keeping up with technology has been a challenge in the sector but the time to speed up the process has come. Today, to stay competitive in the market, it has become imperative to make technology a part of the business process. New innovations like artificial intelligence, machine learning, and virtual reality in design, construction, and marketing can help developers keep up with the times.

Conclusion

The growing population presents a significant opportunity for Indian real estate. It is also believed that collaboration between the various verticals within the sector is crucial to realising the full potential of this growth. To enhance this, the government can continue to provide incentives to developers to invest in affordable housing and infrastructure development, streamline the approval processes, and provide land for development.

With a new generation, come new ideas. Ideas in the form of businesses, offices, information, data centres and more. All of these require space to thrive. We need to work together to create an ecosystem that supports growth and development. This means building partnerships with the government, communities, and other stakeholders to ensure that we are delivering solutions that benefit everyone.