How will the year 2019 be for Indian real estate sector?
India real estate market is a significant investment sector with maximum NRI investments. Researchers from Harvard have identified that our country is potentially strong to outfall other counties and become the fastest growing economy in a decade.
In spite of being one of the most globally recognized sectors with four sub-sectors –retails, hospitality, housing, and commercial, Indian Real Estate sector is a vast sea which has had many complexities swimming in the past few years. However, this indefinite anxiety which had beset the Indian real estate is now replaced due to the vigilant assurance and farsightedness, by the government of the country. To adapt to the growing needs of the country’s rising population, some shifts in the old policies and drive towards reforms, the Indian Government has once again successfully blossomed the Indian Real Estate Market. To know about the future of Indian real estate sector in the year 2019, let’s consider some useful points that shall help us clearly draw an amiable conclusion.
1. Emerging new markets: The rapid growth of the real estate market has encouraged new buyers to invest in the sector with a positive belief of accomplishment. Earlier because of the highly snowballing prices of the primary markets which are becoming excessive for the buyers, the real estate sector was seeing a comedown. Although, the spotlight has now shifted from the primary markets to secondary and territory markets. With the help of the budgeted price of tier 2 and tier 3 markets, the government has fortunately bridged the gap of unaffordability in the market.
2. Transparency: Due to a weak regulatory system, the past decade experienced delays and no declaration of deadlines in the completion of numerous projects. Projects were started but the work was too slow. There was no surety about their end. Yet after the enforcement of RERA (Real Estate Regulation and Development Act), 2016, developers are juggling their business plans and executing and completing their projects on time.
3. Executed mission: Marked as the year of execution, 2019 can record a good supply of houses all over India’s leading markets. With many projects on the verge of completion and some still running behind calendars, the residential market is having an immense push towards affordable housing. Determined by the transparency, the year will surely remove the black clouds and revive the Indian Real Estate market.
4. Attracting Investors: Foreign buyers and investors have always had eagle eyes in the Indian markets. But, the past circumstances disinterested the foreign investors. Now, due to the slew of old policy measures and implementation of new improvements, the hourglass has turned upside down. When earlier the real estate market was witnessing a downfall with a weak image covering the market, and there was difficulty in getting money from the Reserve bank of India, now pension funds and Private equity funds have become the consistent and primary source in this year. Our country assumes a comeback of the foreign investors in the Real Estate market, in 2019.
5. Airing the affordable flag: The dream of the government to provide “Housing for all” has taken wings this year. Being a silver line to the Real Estate sector, the concept of affordable housing is growing at a high rate. Both investors and developers have received big ticket-opportunities through this segment to provide fast completion of around 40 million houses, the country was facing a shortage of. Due to which developers have shifted their interest in affordable housing construction rather than luxury and mid-housing concepts. Hence, this has raised the demand for affordable housing in the coming year.
With the outlook to redefine the reality space of India in 2019, the Indian real estate sector is doing a speedy performance. Through reform arrows like GST and RERA, the government has directly targeted growth with a big bang. Infrastructure projects completion on deadlines and affordable housing creations has undoubtedly hit the arrows on the path and offered incessant alliance in the market. Indian real estate is likely to experience a positive evolution in 2019 which will get the country a globally accepted reputation and a contented comeback.