Demand for bigger homes is rising. Does the growth seem linear?
Real estate market conditions change rapidly and the demands keep varying.
In 2023, the trends predict there will be a sharp rise in the demand for bigger homes. This will vary depending on factors including economic conditions, population growth, and infrastructure developments. However, in many urban areas, the demand for bigger homes has been influenced by factors such as increased disposable income, a growing middle class, and changing lifestyle preferences, including the desire for more spacious living environments.
Real estate industry bodies, market-based research reports, local property experts’ opinions, and reputable news outlets confirm that the demand for bigger homes has increased. And here’s why:
Property prices
Leading up to 2022-23, many regions experienced a sustained period of rising property prices. Factors such as low-interest rates, limited housing supply, population growth, and high demand contributed to this trend.
The shift in housing preferences
The COVID-19 pandemic led to changes in housing preferences. People sought larger homes with more space for dedicating a room/corner to remote work and striking a conducive balance between work and life.
Comfort and lifestyle are emphasised
As societies evolve, people may prioritise more spacious living environments that offer greater comfort and enhance their overall quality of life.
Multigenerational living
Indian families, in many cases, tend to live together under one roof, either to save costs or to care for ageing parents. Multigenerational households automatically require larger homes to accommodate everyone comfortably.
Investment potential
In certain markets, larger homes may have better resale value and be viewed as a more attractive investment option.
Availability of land
In areas where land is still relatively abundant, it might be easier and more cost-effective for developers to build larger homes, thereby meeting the demand for bigger living spaces.
Is the growth linear?
Here are a few factors that could contribute to a real estate market exhibiting linear growth:
Steady economy
A stable and growing economy can lead to consistent demand for real estate, supporting a linear increase in property prices.
Balanced demand & supply
If supply matches the demand, it can result in a steady increase in prices over time.
Controlled development
When there are regulations that control the rate of development and ensure balanced growth, it can lead to a linear increase in property prices.
A linear growth trend is evident because real estate markets are influenced by a multitude of factors, and fluctuations are currently common. Linear growth is just one possible scenario, but in reality, real estate markets can experience periods of rapid growth, stagnation, or even decline based on changing economic conditions, government policies, and other external factors. Additionally, real estate investments should always be made with careful consideration of individual circumstances and long-term objectives.
