Top Trends that will shape Indian Real Estate in 2020
The real estate sector is one of the most globally recognized sectors. The real estate sector comprises four sub-sectors – housing, retail, hospitality, and commercial. The growth of this sector is well complemented by the growth of the corporate environment and the demand for office space as well as urban and semi-urban accommodations. The construction industry ranks third among the 14 major sectors in terms of direct, indirect and induced effects in all sectors of the economy.
The real estate industry is in the cusp of transformation and the past decade has played a crucial role in shaping the sector. The realty sector and its ancillary industries witnessed a series of structural reforms with the advent of RERA, policy change, industry consolidation, fast protect growth, and so on, which has helped increase transparency and trust between builders and buyers. Furthermore, the clarion of ‘Housing for All’ has brought the mid-income housing and affordable housing sector to the foreground.
Affordable & mid-income homes will get a thrust: The time for affordable and mid-priced homes has finally come. As home shortages continue to soar, there has been a pressing need to take emboldened steps to bridge the gap. Fortunately, the government has been taking proactive steps to address the challenge. In its first term, it gave infrastructure status to affordable housing, offered financial incentives to buyers and devised an innovative mechanism to raise funds. In the maiden Budget of the 2nd term, the government continued its commitment towards affordable homes in India. In the times ahead, the affordable and mid-priced segment will constitute a sizable part of the market. There are some tata housing upcoming projects in Gurgaon and other cites which provide Affordable & mid-income homes
Technology has been playing a pivotal role in the growth of the real estate sector in India and has led to gains not only for buyers but also the sellers. Not just in terms of construction, but even in terms of simplifying the property buying process. Access to information, customer expectations, and client service are very different from what they were even five years ago. Technology has increased the construction quality standards and reduced the time taken to build the infrastructure. What once took months and years to build, can now be achieved in weeks, without taking a toll on the project cost and labor. The concept of augmented and virtual reality is picking up a pace where buyers can experience the property without physically visiting it. India could potentially become a hub for blockchain technology in the real estate sector as it will bring the necessary confidence back in the system.
Both the residential and commercial sector to grow
Both commercial and residential properties have their pros and cons. So there must be growth in both sectors. Commercial properties are a little higher in cost as compared to residential properties but they yield higher rental returns. On the other hand, residential properties are bought primarily for end-use as well as a long-term investment. “Commercial real estate has been gradually growing in terms of demand with supply just about keeping up, so price points have steadily moved upwards. Presently, growth in capital and rental values of commercial real estate is on a growth curve. Residential real estate has remained largely stagnant since the past few years – caused by the impact of regulatory changes. There is some Godrej apartment in Greater Noida and other cities that provide growth in the residential sector.
Co-living and co-working spaces will continue to rise
Over the past few years, there has been a significant change in the buying behaviors of customers, especially the millennials. They are more inclined towards co-living spaces that are more dynamic as compared to the usually rented space. he growing co-living and co-working segments, which continue to disrupt the traditional real estate space in the country, are set to further increase their footprint coliving and coworking space., the rising demand for shared renting will propel the market and offer a business opportunity.demand from corporate, it startups and entrepreneurs has resulted in a huge jump in the co-working share in total office leasing.