The Indian real estate industry has witnessed a number of changes in recent years. Starting with demonetization in 2016, the economic reforms continued throughout 2017, including the inception of RERA and the imposition of GST. These policies have slowed down the growth of real estate in India to a certain extent. However, the economic policies have increased the transparency in the industry and the homebuyers are more confident to make their purchases now. The real estate industry is recovering, and a number of favourable trends are likely to emerge in 2018 and 2019. Here are the important trends that are likely to show up in the industry.
More inflow of capital
The real estate market in India is open to international investors and the cash inflow in likely to increase in the coming years, in the form of investments. Investors are interested in purchasing both residential and commercial properties in the country. The demand for commercial property in India has been increasing over the years, particularly in the key cities. Several blue-chip companies are coming up in these cities and the MNCs are also expanding to these regions. Increment in FDI in real estate is likely to favour the sector. Besides, the favourable tax policies introduced by the government will further bolster the industry.
Revamping business models
Previously, the developers used to launch projects without any guarantee of completing them on time. However, with the new regulations of RERA coming into play, they need to complete the projects within the scheduled time in order to avoid penalties. The developers are revamping their business models to ensure that the projects are complete within the stipulated timeframe. This will prevent them from diverting the capital from one project to another. It is necessary for them to channelize the funds in the right project for speedy completion.
Increasing demand for homes
The demand for homes has been increasing in the big cities. The prices of these homes are also on the rise. Investors are interested in buying both residential and commercial real estate. New projects are likely to come up in the big cities as well as the suburban areas. The developers are focussing on homes with green living facilities to woo buyers. Besides, the government is coming up with the affordable housing schemes. This is a major boost for the real estate sector. Investments in the real estate sector are likely to increase in the coming years.
People are also interested in purchasing commercial spaces. The demand for luxury homes will go up in the years to come. However, this will be restricted only to the high-end sector. The co-working spaces are also coming up in the cities. Commercial real estate has great potential for the investors in the years to come. Investors and homeowners should have a look into the upcoming residential and commercial projects in the big cities. This is the right time to make the investment. The returns on selling these properties are high. You can also rent them off at high rates. If you are willing to buy a property in India, this is the right time to make your move
