Construction - Why developers are flocking to redevelopment: The new shift in real estate?
The Indian real estate market is undergoing a seismic shift, driven by changing buyer preferences, an expanding economy and ambitious infrastructure projects. This dynamic landscape presents challenges and immense opportunities for developers and homebuyers.
Market dynamics: The Surge in residential property prices
The surge in residential property prices shows a growing market fuelled by strong demand. Developing new micro-markets with better amenities also contributes to a tighter supply-demand dynamic. Other drivers include rising luxury appetite, impending infrastructural undertakings as well as strategic locations. As such, developers increasingly concentrate on the upscale segment developing premium projects that resonate with the changing tastes of discerning customers. In Mumbai, of the monthly average of 10,000 property registrations, around 10% to 20% of property registrations are that of redevelopment projects, according to data shared by Knight Frank India, a real estate consultancy firm.
