In the last few years, India as a whole faced many turmoils. The big bang reforms have brought about crucial changes in the tax, regulatory and business environment in India. Post demonetisation, the introduction of RERA and GST improved the transparency and accountability in the Real Estate sector. This, in turn, helped in catching the attention of investors who are now looking at Indian real estate with rekindled dynamism. Those real estate laws addressed the biggest issue concerning buyers on timely delivery of the projects.
The past few years have brought many changes in the country especially the Real Estate sector. The year gone by has truly shaped the sector to adapt to the numerous reforms that would guarantee quality construction to the homebuyers. Now, the confidence of the homebuyers has increased with a clear understanding of the market. The developers have also witnessed a smooth regulatory business process.
Here are the expectations of the real estate market in 2019:
Commercial real estate to prosper: The coming year is expected to give a tremendous scope for the commercial real estate with the growing number of IT Parks, start-ups, co-working places and e-commerce which are also the key drivers of this segment. Rentals are going to be the major drivers for the growth in commercial realty as investors tend to rent a commercial space rather than buying it. Student housing is also expected to be in high demand with the rise of educational institutions in metro cities.
Warehousing will be in demand: Warehousing is going to be the highlight of the New Year. Being a rising sector, it will also keep a strong grip in the market. There has already been a major demand in the market for warehouses with the rise of e-commerce. With the liberalization of FDI policy, the demand for warehousing is expected to grow further in 2019. Along with, the electronic and white goods segment will also be driving the warehousing sector. A recent industry report says that – “India is set to witness investments close to INR 50,000 Cr for the creation of warehousing facilities across the country between 2018 and 2020”.
Government initiatives: Apart from RERA and GST, the government has also taken steps by introducing improvements in the taxation and regulatory features like REIT. The central and various state governments are also expected to announce single window approvals for real estate. After it comes into the picture, it will contribute significantly to the growth of the industry.
GST and REIT have led to improvised transparency that has caught the attention of many investors. With the beginning of the first REIT in 2019, investors could look forward to great opportunities to be a part of the trust.
Homebuyers shifting from affordable & mid-market housing: 2019 is going to be a big market for mid-market and affordable housing. The prospective buyers are going to shift their sentiments from luxury spaces because of the additional charges that the luxury properties come with. Premium properties with attractive amenities and features that are also affordable are going to rule the residential real estate market.
With the present government measures and driving factors, the Indian Real Estate sector will surely progress with increasing demand in the year 2019.
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BACK 4, December 2018