By Runwal Group Posted Feb 21, 2019 In Market trends and insights
2018 was a significant year for India’s real estate sector. It was the year when the market started to recover after a couple of years of slowdown, especially as an aftermath of regulatory reforms like the Real Estate Regulatory Authority (RERA) Act and the Goods and Services Tax (GST). Although these interventions have brought in a greater level of transparency and efficiency into the system, one could ascribe the initial liquidity crisis in the market to these reforms.
There’s much that seems to be in store for the sector in 2019.
Here’s a look at some expected trends in India’s real estate sector this year.
1. Spike in demand for housing:
The housing sector is all set to take centre-stage in 2019. The Housing For All by 2022 initiative has shifted the focus onto affordable housing, and the market will witness a spike in both the demand as well as the supply of housing units across the country.
2. New-age workspaces:
India is moving towards an economy that encourages job creation, and the startup culture is on the rise. This will lead to a change in the landscape of commercial real estate in India, with hybrid co-working spaces replacing traditional office units.
3. Greater investments through REITs and FDI:
2019 will also witness increased investments in real estate, especially through REITs and FDI. REITs can effectively address the problem of unoccupied inventory in India, while mobilizing returns and enabling investors to start small and diversify their investments. The advent of REITs and the relaxation of FDI policies will also attract more global investors.
4. New wave of first-time buyers:
This year will also witness a new wave of first-time buyers who are the beneficiaries of India’s growing economy.
5. Affordable housing takes centre-stage:
As a result of the Housing For All initiative by the Government of India, affordable housing will be given greater emphasis in 2019. In Q2 2018 alone, approximately 50,100 new housing units were launched across NCR, MMR, Chennai, Bengaluru, Pune, Kolkata and Hyderabad, a large number of which were affordable housing units.
6. The rise of new markets:
The increase in the demand of new housing units has resulted in real estate developers exploring new markets in the country. This year will therefore witness significant real estate development in the Tier 2 and Tier 3 cities in India.
7. All about transparency:
Reforms like RERA, GST and the Benami Property Act, have introduced a new wave of transparency and accountability in the sector. With the advent of these reforms, real estate developers have revamped their business models, and we can expect to see many more projects that are compliant with the regulatory standards.
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