Mr. Agnelorajesh Athaide (Co-Founder-SAVV Global VNCT Venture, Global Developments)
New Delhi, December 28, 2019: The Indian real estate sector has regained its footing after the negative hit of demonetization and has evolved itself as the most sought-after sector in India. The Indian government has constantly projected India to become a USD 5 trillion economy by 2024-25, with a part of the growth reflected in the year 2019. The Indian real estate sector is poised to contribute to 13% of the GDP.
The past few months the Indian Real Estate Industry has witnessed a major slow-down that has still to be overcome. In addition to the above, the ongoing government and trade policy updates like Maha Rera (Maharashtra Real Estate Regulatory Authority), and changes have further led to a comparatively passive industry growth. While these policies have, in the long run, driven the sector to be a transparent, healthy, competitive, and efficient industry, schemes such as “Housing for All by 2022” have increased the demand for real estate in India as the government is using the sector to create positive economic change.
Top trends for the Real Estate segment for 2020
Hospitality, retail and commercial real estate is expected to end its passive phase in 2020, the real estate segment is expected to follow these trends in 2020:
- Expansion of suburbs for residences:Owing to complex urbanization and city problems such as pollution and traffic, real estate projects are being developed at a staggering pace in the suburbs. According to a report by 99 acres, Mumbai suburbs are gaining the highest interest with 3000 residential projects set to arise in 2020.
- The popularity of SEZs:Special Economic Zones are becoming more popular as they offer attractive incentives to resident businesses in the way of duty-free exports, tax incentives, competitive infrastructure, and more. SEZs are expected to increase in 2020, as the government is planning to open 423 SEZs across India, with 221 already in operation.
- Commercial Hubs for office:As India is witnessing high growth in startups and businesses, the demand for commercial office space is expected to rise in the coming year. According to a CBRE South Asia study, nearly 40 million sq. ft. real estate development will be new office space in 2020 working as commercial hubs for office.
- Real estate as an investment option:Experts in the domain believe real estate to be the hottest investment option in the year 2020. As land resources are declining over time and the demand is growing at a higher pace, property prices are expected to rise in the near future. An investor will benefit from investing in real estate in 2020 as it can be sold at a profit when the prices go further up.
- Government policies: The government, along with other state governments has taken many measures to ensure a transparent and credible real estate segment. Reforms such as RERA and GST have improved the operations of the real estate sector and have impacted the segment positively. The grant of infrastructure status to budget housing properties has driven the sector’s demand by a hefty margin in India.
The growth of the Indian real estate sector has been driven by single-window approvals by the central and state governments. The industry is experiencing an upswing, backed by innovative government policies and increased the interest of both local and foreign investors. Private equity inflows in the Indian real estate sector rose by 26% to $3.9 billion in the first half of 2019, establishing the rising confidence of institutional investors in the real estate sector. Creating an opportunity worth Rs 1.25 trillion (US$ 19.65 billion), it will prove 2020 to be a year of high growth for the Indian real estate sector.
Corporate Comm India(CCI Newswire)