Single window approvals by central and various state governments to accelerate the growth of the industry – Mr. Madhusudhan G., ChairmanandMD, Sumadhura Group
New Delhi, December 25, 2018: Post the revival of the Indian real estate sector through a series of initiatives by the government, the confidence of the homebuyers has increased with a clear understanding of the market. The developers, on the other hand have also witnessed a smooth regulatory business process. This development is expected to help increase the cash flow in Indian real estate sector in 2019.
Commercial real estate to boom
In the approaching year, there will be a huge scope for the commercial real estate due to the increasing number of grade-A office spaces for start-ups, co-working places and e-commerce which are also the key drivers of this segment. IT parks in terms of location and amenities will also emerge as an exemplary trend for commercial real estate growth in India. Rentals in commercial realty will become an epitome of growth, as the investors tend to rent a commercial space rather than buying it. Also, the increase in educational institutions in metro cities will drive student housing, which is a huge unmet demand in the country.
Warehousing to get a major boost
Another rising sector is warehousing, which will also have a strong grip in the market. There has already been a sharp increase in the demand for organized warehousing due to the advancements in e-commerce. Now, with the liberalization of FDI policy, the demands for warehousing industry is expected to escalate more in 2019.
The electronic and white goods segment is expected to be another key driver for growth in warehousing,as the need for substantial warehouses in urban and semi-urban areas will increase.According to a recent industry report, India is set to witness investments close to INR 50,000cr for creation of warehousing facilities across the country between 2018 and 2020.
Further initiatives by govt to strengthen the industry: REIT to come into force
The government has also taken steps by announcing certain amendments in the taxation and regulatory features which will definitely help the Indian real estate grow. RERA is streamlining the real estate, ensuring that the buyer gets full value for the money spent in buying a home. The central and various state governments are also announcing single window approvals for real estate. If the same becomes effective, it will contribute significantly to the growth of the industry.
Furthermore, GST and the approval by SEBI for the Real Estate Investment Trust (REIT) has led to an improvised transparency, which in return has caught the attention of institutional investors who are now looking at Indian real estate with renewed dynamism.With the expectations of advent of the first REIT in early 2019, investors could look forward for great opportunities to be a part of the trust.
Proptech to be a game changer
The numerous facets of proptech will be a major driving force for Indian realty. The technological developments of digital tools combating the challenges of real estate industry by creating virtual and augmented experiences for the buyers,will add a futuristic scope to the sector. Also, the advents of chatbots, BIM, drones and next-gen innovations will further proveto be highly efficient and beneficial in making construction faster and safer for everyone.
Homebuyers sentiment to shift: Affordable & Mid-market housing to see maximum traction
2019 is going to be a bright year for both the developers and homebuyers,as mid-market and affordable housing will be a huge opportunity to invest in. Homebuying sentiments will shift towards the homes with compelling price over luxurious spaces because of the additional charges that the luxury properties come with. Hence, properties consisting of amenities and features of a premium project which are also affordable to a larger segment of the population, will be in huge demand.
Millenninals to bring a demographic shift
The real estate firms, since long, have been hearing about the rise of millennials for a demographic shift in the market, however the impact has not been seen.2019 is expected to be the year where this scenario is set to change. Estimates peg that India will have 410mn millennials, who will spend $330 billion annually, by 2020. Also, the preferences and the needs of millennial buyers,like – residential projects with basic amenities, urban connectivity, and public infrastructure in a liberal neighbourhood,are likely to have a healthy traction in the real estate market in the upcoming years.
Overall, accelerated by the present government measures and other pivotal factors, Indian Real Estate sector will surely progress with increasing demand in the year 2019.
Corporate Comm India(CCI Newswire)