The US real estate trends market has been on a steady rise, and 2024 is shaping up to continue that momentum. With growing demand, evolving technology, and a shifting economic landscape, this year will bring some exciting changes.

Let’s take a closer look at the top real estate trends that will dominate the market in 2024:

Shop-cum-Offices (SCOs) on the Rise

SCOs, a blend of retail and office spaces, are booming, especially in Gurugram. These spaces offer investors long-term leases, steady income, and potential for high returns, making them a hot pick in the commercial market.

House Hunting Goes Digital real estate trends

Digital platforms have revolutionized the way people buy homes. From virtual tours to digital contracts, the home-buying process is becoming faster and more convenient. This trend will continue to gain traction in 2024, as more buyers and sellers turn to online platforms.

Sellers’ Market Ahead

With demand outpacing supply, 2024 is expected to favor sellers. As more millennials enter the market and housing demand increases, prices are likely to rise, giving sellers the upper hand.

Implications for Sellers

• Faster Sales: Homes typically sell more quickly in a seller’s market, often within days or weeks rather than months. This rapid turnover is driven by heightened competition among buyers.
• Multiple Offers: Sellers can expect to receive multiple offers, allowing them to choose the most favorable terms. This situation can lead to bidding wars, potentially driving the sale price above the asking price
   
• Less Need for Concessions: In such markets, sellers are less likely to offer concessions like covering closing costs or making repairs, as buyers are motivated to close deals without additional incentives
   

Challenges for Buyers

• Increased Competition: Buyers face stiff competition due to low inventory. Many must act quickly and be prepared to make competitive offers to secure a home
   
• Higher Prices: The limited supply allows sellers to command higher prices, making it crucial for buyers to be financially prepared and possibly adjust their budgets accordingly

Rising Property Prices for real estate trends

Property prices are expected to climb further in 2024 due to high demand. Some buyers may even offer more than the asking price to secure their dream home, pushing prices up even more.

Higher Interest Rates

After years of low interest rates, 2024 will likely see a rise in lending rates due to inflation and global economic pressures. This could impact affordability for some homebuyers.

Tier-II Cities Gaining Popularity

Tier-II and Tier-III cities are becoming attractive residential hubs thanks to government initiatives and increased job opportunities. Many people are opting for homes in these cities while commuting to metro areas for work, contributing to their rapid growth.

Rental Market Slows Down

With more people able to afford homes, the rental market is expected to cool off in 2024. The desire for homeownership is stronger than ever, especially among younger buyers looking to make their first investment.

Office Leasing on the Rise

The demand for office spaces, particularly in IT, retail, and e-commerce sectors, is set to grow in 2024. Warehousing and data centers will also see significant investment as businesses expand.

Key Highlights of Office Leasing Growth

The leasing market is set for a record year in 2024, with total leasing expected to reach 80 million square feet (msf). The first half of the year alone saw 41.9 msf leased, the highest volume for this period and representing 56% of 2023’s total. This growth is driven by strong demand from multinational corporations, particularly in the IT and BPM sectors, which account for 50% of flexible workspace absorption. Flexible office spaces have increased their share from 10.2% in 2019 to 12.7% in early 2024 as companies seek adaptable solutions. Major cities like Bengaluru and Hyderabad are leading in leasing activity, with Bengaluru capturing nearly half of all leasing by Global Capability Centers (GCCs). Experts anticipate an additional 40 msf will be leased in the second half of the year, supported by corporate expansions and a return to office policies.

Summing Up

The real estate market in 2024 presents a mix of challenges and opportunities. As trends shift towards sustainability, technology integration, and changing consumer preferences, both buyers and investors must stay informed to understand this evolving landscape effectively. Whether you’re looking to buy or invest, understanding these trends will be crucial for success in the coming year.