Looking for the trends in Real Estate Sector in the past two years, we can say that we are in the market for growth, we have improved the equities, the growth of co-working culture, in 2019.
Important policies / regulations affected the Real Estate sector in India.
2. The legislation on Benami Properties
3. RERA (Real Estate Regulation Act)
4. GST (Goods and Services Tax)
5. Amendment to Bankruptcy and Insolvency Code
6. REIT (Real Estate Investment Trust)
Indian Real Estate Sector in 2019
- India has been facing strong competition from neighboring countries like Vietnam and Philippines since past few years and they will continue to go head-to-head again in 2019.
- Due to rapid urbanization, Real Estate in India has been seeing high demand in cities like Mumbai, Pune, Hyderabad, Bengaluru among others have seen a flux in people spending on properties.
- Real Estate developers have been focusing on “Affordable Housing” for the benefit of growing middle-income class.
- As Indian Rupee is constantly getting weaker against The Dollar, more NRIs are looking to invest in properties here.
- Due to RERA and GST, developers who did not follow the processes earlier are bound to change their business model to sustain in the market in the long term.
- ‘Housing for All by 2022’ – Under the scheme of Pradhan Mantri Awas Yojana, an initiative by Government of India, affordable housing to be provided to every citizen on India by 2022.
- Increased cash flow to be expected in coming years because of Real Estate Investment Trust. After SEBI’s approval, REIT – a platform for getting investments, might see openings in few years.
- Many past year projects which were under process or reaching their deadlines will be completed first and we will see a good amount of supply of houses and other commercial properties in the market.
- Middle Class (opting for affordable housing) will again be the savior of Real Estate in India as the developers have been seeing great demand for affordable housing rather than mid-housing or luxurious segment.
- Real Estate to see increasing FDIs (Other than NRIs) because of the reduction of time and paperwork in the completion of the investment procedures by foreign nationals in India
- Tier – II & III cities should be the focus areas for developers in 2019, as many government schemes are being provided for the betterment of smaller Indian cities
- New Target Audience for the Real Estate market could be Senior Citizens & Students, as both constitute a majority of population size.
Ultimately, 2019 is going to be a key year for the Real Estate sector in India where developers should focus on consolidating and working on existing inventory and for buyers / investors, they will be looking at further price correction in the market.
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