2 weeks Ago
Real estate prices in India have steadily increased over the past few years, with experts predicting 'decades of demand' were yet to come. Zerodha co-founder Nikhil Kamath questioned real estate experts about whether the prices would crash in the sector. Answering Kamath ’s question, Irfan Razack, the Chairman of Prestige Group, affirmed that real estate prices will never fall.
In the case of India , the rising population and urbanisation are the key factors driving the demand in the real estate sector, Razack said in a podcast hosted by Nikhil Kamath titled “WTF are Indian Real Estate Giants Up To? ” The discussion included experts such as Nirupa Shankar, Executive Director at Brigade Group, WeWork India CEO Karan Virwani, Irfan Razack, the Chairman of Prestige Group. The real estate prices depend on the country, population to population, he said. “Coming to India, with the type of population you have in this country, this is just the tip of the iceberg; there has to be a lot more urbanisation has to happen, alot of people have aspiration to buy home,” Razack said while explaining the reason why the sector would never crash.
On the factors contributing to real estate demand, Razack said that the number of people in the country, the type of job creation, and the level of industrialisation have been major contributors. Razack stated, in the case of India the need for real estate is very high. “There is a real demand,” he said.
India's real estate sector The real estate sector is projected to grow by 9.2 per cent CAGR from 2023 to 2028, according to the Indian Brand Equity Foundation (IBEF). The real estate sector generates the second-highest number of jobs in the country after the agriculture sector, IBEF said.
He advised real estate dealers to consistently target the masses and the price they can afford instead of just focusing on the luxury sector. Earlier, retired people used to invest in real estate, but there has been a shift from that.The sector also witnesses price fluctuations, as sometimes the price may go up very high and hit a plateau for some time, he added.
When questioned about the impact on the real estate sector with the change in Indian demography, like Japan and China, where the younger population is declining, Razack said that the sector will not collapse in the future too. China faced a real estate crisis 2021 led by the Evergrande Group caused by overbuilding and new debt rules..
