Micro-Market vs Macro-Market

Generally, micro-markets in the retail sector or real estate sector are influenced by demand, styles prevalent in the macro-market. However, with rapid urbanization and people's preferences to look for housing in calmer, cleaner and affordable neighbourhoods, micro-market trends can take set or follow a trend independent of the macro-market. 

In the real estate sector, micro-markets can be neighbourhoods, subdivisions, and localised portions of a city's overall housing market with distinct defining features.

Examples: 

• Devanahalli and Narsapura micro-markets, in the Bengaluru macro market 

• Banjara Hills and Jubilee hills micro-market in the Hyderabad macro market

• Colaba and Juhu micro-markets in Mumbai macro market

A macro-market can be as large as the entire state or country. Often when a Real Estate Agent refers to the market, it could refer to a micro-market on the outskirts of a metro-city like Bengaluru; or a macro market comprising the entire Bengaluru city.

Generally, the real estate demand and price trends of a micro-market may follow the larger leads of the macro market. However, this may not always be the case, as sometimes, due to supply glut or other factors like conveniences, affordability, relative serenity, micro-markets can trend independent of the macro market.   

The future of the real estate market in India is very promising for both home buyers and investors. The real estate market in India is expected to grow from ₹ 12,000 crores (in the year 2019) to ₹ 65,000 crores (by the year 2040). In macro terms, the Real estate sector in India is expected to reach US$ 1 trillion in market size by 2030, in the process expected to contribute approx. 13% to the country's GDP by 2025.

The younger generation and the middle-aged group are likely to focus on specific micro-markets for their home purchase plans while being aware of the macro-real estate trends.