Indian Real Estate Investment: What’s the Forecast for 2020?

When it comes to real estate investment, you would need a different strategic approach than purchasing properties for personal use. Investments take into account a lot of factors that can deliver a return on the investment. Returns can either be extracted by renting out the properties, reselling them at a higher cost or both.

Just like any other investment options, you need to be aware of the trends in the market you are investing in to make an informed decision for high-yielding returns. If you are looking to invest in the Indian real estate landscape this year, here are some property trends that would affect your investment decision.

Current Investment-oriented Property Trends

• The rise in demand for emerging micro-markets
  2019 has witnessed a rise in sales and demand across the country. The stand-out trend being the rapid rise of emerging micro-markets due to infrastructure and economic developments. Areas like Airoli in Navi Mumbai, Pirangut in Pune and Madhapur in Hyderabad have witnessed a huge demand for residential homes in the past year. So focusing on these locations in 2020 will be highly beneficial for investors.
• Impacts of 2017 real-estate reforms
  The three major reforms of 2017 –GST, RERA and affordable housing – have had an overwhelmingly positive impact on the industry. The “Housing for All by 2022” initiative saw an increase in the demand for affordable homes. The RERA launch has brought uniformity in the real-estate market and increased transparency, improved builder accountability and trust. GST has made business transactions easier. The cumulative effect has driven the rise in demand for real-estate investments.
• Innovations offered by developers
  The real-estate sector has seen some major innovations in the last few years. From comfort homes, homes centred around children or seniors, smart homes and more, buyers now have a wide array of options to choose which homes perfectly match their lifestyles. Additionally, other break-through features include sustainable infrastructure, smart amenities, utmost security and several other luxury amenities in order to improve upon their projects’ value proposition.
• The popularity of integrated townships
  Issues like rising property prices, over-crowding and spread of income opportunities have championed emerging Tier-II emerging cities. Property prices here are not only reasonable but due to the availability of large land parcels, developers have started construction of high-quality residential homes and townships at competitive prices.
  Townships offer everything you need for daily life in one place and hence are more in demand. Investing in a township home will ensure a higher probability of a good return on your investment.

How wise is it to invest in Indian Real Estate in 2020?