As an aftermath of the liquidity crisis following demonetization, the real estate sector in India had gone through a slow phase. However, towards the middle of 2018, things in the market started to pick up again. 2019 is expected to be an important year for India’s realty sector, with some major transformations unfolding.
Here are some real estate trends we can expect to see in 2019.
- Greater demand and supply of affordable housing: Affordable housing has taken centre stage in the realty market, owing to the government’s agenda of Housing For All By 2022. The aim is to build one crore new housing units by 2022. There were approximately 50,100 new housing units launched across NCR, MMR, Chennai, Bengaluru, Pune, Kolkata and Hyderabad in Q2 2018, among which the majority were affordable units. Moreover, the recent announcements in the Interim Budget 2019 will further fuel the demand and supply of affordable housing.
- The rise of new, hybrid workspaces: With the rise of the gig economy and startup culture in India, hybrid co-working spaces have witnessed increasing popularity. Moreover, traditional office spaces are now giving way to these co-working setups, and corporates and co-working operators are working collaboratively to nurture these cost-effective commercial spaces. We can expect to see many more of such workspaces in 2019.
- REITs to bring in greater investments: REITs will continue to play an important role in India’s real estate economy in 2019, especially to help mobilize the returns on idle properties (unsold inventory). REITs offer investors the opportunity to start small and diversify their investments, and also make it easier for global investors to venture into the Indian market.
- The expansion of the market: With an increased emphasis on housing, real estate developers are looking to expand the realty market to Tier 2 and Tier 3 cities in India. In 2019, we can expect to see the launch of new housing projects in these cities, as well as other complementary infrastructural development in these regions.
- New and transparent business models: Real estate reforms like RERA and the Benami Property Act, as well as overarching economic policies like GST, have introduced greater transparency, accountability and quality construction into India’s realty sector. As a result of these reforms, developers have revamped their business models, and in 2019, we can expect to see more projects that are compliant with the revised regulatory standards.
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