Major decisions by the Indian Government with regards to the real estate sector have affected the industry in one way or another. Still, just like other investment opportunities such as gold or bank deposits, the interest in the Real Estate market as an investment option is slowly coming back. Whether it is commercial or residential, both these sectors are gaining back the trust from the buyers.
With the introduction of the Real Estate (Regulation and Development) Act 2016 (RERA), there has been a significant boost in the real estate industry. Many new real estate projects in Mumbai have come up, displaying their RERA numbers to convince the buyer of the developer’s authenticity. RERA has brought about a lot of transparency in real estate dealings.
Affordable Housing Changing the Face of Real Estate Sector
According to a study done by FICCI, the residential sales went high with 64,000 units sold in the first half of 2018. Affordable housing is gaining a lot of popularity among home buyers. The demand is increasing and so is the supply. Many real estate developers in India are launching new projects to tap into this section of buyers. There has been a rise in the average capital values in cities like Delhi-NCR, Hyderabad, Mumbai, Chennai, and Bengaluru.
Affordable housing has given a good chance for home buyers to buy property in Mumbai. Developers are keen on providing compact size homes. The pricing trend has become all-inclusive. This box pricing is helping buyers to get a better idea of the total cost and whether it fits their decided budget. With the announcement of policies like ‘The Pradhan Mantri Awas Yojna’, which aims to have ‘Housing for All’ by 2020, it has reinstated the trust in real estate investment.
Indian Real Estate Market Forecast 2019: Trends & Where to Invest
Though there has been a good recovery for the real estate market in 2018, buyers should tread cautiously in the year 2019. Here we bring forth some forecasts for the year 2019 and also what are the prospective sectors in real estate for investment.
• Well made products will be the key in 2019. Developers will have to keep an eye on the whole lifecycle of the product. From planning, architecture, phasing of projects, management, and amenities etc, all of these have to be done way before the sales start. The margins will then be decided based on the ability to generate sales faster. Project Management Companies will have a big role to play.
• The residential market is going to make a comeback as there are more and more launches.
• Warehousing will continue to have a high demand in 2019 too.
• Fresh concepts such as co-living flats, housing for students will garner more focus. The tide is changing as more and more youth have a different mindset towards living than what it was a few years ago.
Where to Invest in 2019
1. Office Markets
The equity inflows by the private markets into commercial has been higher than the previous inflows. Currently, India’s Office real estate market stands at 530 MN sq. ft. The forecast is that it might pass 700 MN sq. ft. by 2022. Best builders in Mumbai are aiming at tapping the Co-Working space sector of the office market.
2. Warehousing Sector
With more and more E-Commerce companies coming up, the warehousing sector is seeing a strong rise in the demand. 3rd party logistics is another addition to the segment.
3. Residential Properties
With the advent of affordable housing concept, residential properties are also witnessing huge demands. Real Estate in Mumbai is seeing more and more HNIs and NRIs wishing to invest in luxury homes in the upmarket localities of the Mumbai region.
4. Retail Markets
As the cities are improving and ‘Smart Cities’ plan is gaining momentum, it has given a much-needed push to urbanization and consumerism. Many malls are springing up and quality mall space is in demand.
As we wrap 2018, the year 2019 looks more on the brighter side for the real estate industry in India.