The Indian real estate industry is undergoing some rapid growth that is fueled by several reforms in law and regulations along with a steady demand which is a by-product of rapid urbanization. The country is soon to be a developed nation which can be seen reflecting in the rising per capita income of its population.
The other driving force that is contributing to the growth of the real estate industry in India is the availability of nuclear housing facilities that are not only affordable but are trendy as well! As per statistical data put forth by JLL and CREDAI, it is expected that the real estate industry of India is going to surpass the $180 billion mark by 2020!
The most promising data that is a stark example of the growth of the India real estate industry is the amount of cash that has been poured into it since 2014 (about INR 590 billion!). The resulting reason will be around 11 percent growth of the Indian GDP by the end of 2020!
The emerging trend of short-term rentals in the real estate industry of India
Most of the investors (around 48%) in the Indian real estate sector are investing in fully stocked, furnished and luxurious properties that are located at popular tourist destinations. Investors are investing in commercial buildings that are in prime locations of popular cities across the nation.
To explore more about the future of the Indian real estate industry and short rentals you can read SmartOwner`s recent blog post on short-term rentals as it is gaining grounds in terms of popularity and as an emerging trend with each passing day!
The motive behind it all is simple, to rent out the luxury homes to tourists on a short-term basis. The Indian millennial is following the footsteps of their American counterparts which can be seen in the data where it is shown that the average age of vacation property owners has come down to early 40s and late 30s.
The Indian real estate investors are also seen renting out their residential properties located in urban and semi-urban localities and reinvesting the money on purchasing holiday homes in popular tourist destinations. All in all, short-term rental started out as a trend in foreign real estate sectors whose effects can already be seen in the Indian sector as well!
What does the future hold for the Indian real estate industry?
With the emergence of a new wave of contemporary entrepreneurs in India, several new companies are coming up with their own business ideas backed by technological solutions. These young entrepreneurs and their rocking ideas are coming up with never-heard-before services like renting out luxury properties to prospects on a short-term basis. Backed by the immense reach and power of the internet, managing holiday properties remotely has become easy. It is one of the reasons why property owners are rapidly coming up with their own companies where they would purchase a property, away from their residence, furnish it fully and rent it out on short terms basis.
There is a niche but growing number of globetrotters and frequent backpackers with cash to spare who are always on the lookout for luxury accommodations. The benefit of properties available for rent on a short-term basis is that these are fully furnished, equipped with all creature comforts and comes in with fully stocked kitchens. On top of that, unlike a hotel room, a holiday home has a lot of room to breathe and is often available at a price lower and situated at prime locations.
It is expected that by the year 2050, there will be a drop in standalone building complexes. Due to space constraints and rising population, each building will be used for all sorts of purposes like space rented out for a hospital, shared office space, shared retail complexes and many more.
In one word there will be maximum monetization which is the result of complete utilization of unused space in a shared way. The trend is already being followed with full effect in many countries. India too is seeing an emergence of the trend in its metro cities like Mumbai. The trend of short-term rental is gaining grounds in India which is the effect of the changing property buying habits of its millennial population.