The real estate sector's major challenges in 2023

 

Real estate experts predict that 2023 will be a pivotal year for the Indian real estate market as 

the country continues its steady march towards prosperity, propelled by government spending, 
private investments in manufacturing, and the advantage India enjoys on the global stage.

The cooling effect of the US recession will be one of the biggest issues facing the real estate 
market in 2023, according to Vishal Raheja, MD, InvestoXpert.com.

Handling the consequences of decreased income flows in the IT/ITES sector will be one of the main problems. We anticipate it will be a significant hurdle for us to overcome because it takes up a substantial portion. But that does not mean that all market demand will suffer significantly, he continued.

It might be challenging to pinpoint the major effects of geopolitical concerns related to real estate, 
according to Aman Gupta, Director, RPS Group. Because it is unclear how these risks may affect certain economic and financial sectors in the future, they frequently take the form of volatility.

According to Aman Gupta, "it is challenging to isolate and measure a conflict like the war in 
Ukraine, further production halts brought on by increased COVID infection rates in China, or 
local politics including rent controls and sustainable development and restoration standards."

The cost of construction materials, particularly essential input materials like cement and steel, has 
increased significantly, according to Ashish Aggarwal, Director of SpaceMantra.

They will be obliged to hike pricing and pass the expense on to end customers as construction costs grow. He noted that it is anticipated that rising property values will also raise rental rates.

"Because it is already clear that the economy will be strong, local activity will pick up, and the government will take steps to support Tier 2 cities' further expansion, the real estate market will do well in 2023. Due to rising economic activity and employment opportunities, Tier-2 cities are predicted to become even more popular as desirable places to live in the future year.

The government's proposed sector-specific actions should benefit all market participants, including homebuyers, developers, landowners, and tenants, as consumer confidence is still high "the Arete Group's director Siraj Saiyed stated.

Source biggest challenges for the real estate industry in 2023