After going through a tough phase, the Indian real estate sector has witnessed better growth in recent times.Arun Dev Builders, one of the leading real estate builders, believe that the new trends will shape the future of Indian real estate in the coming years.
Recently, a world investment report in 2016 stated that India is ranked 4th in the developing Asia for FDI inflows. Indian real estate attracted $32 billion in private equity till the month of May and the global capital stood at $5.7 billion in the year 2017. The year 2016proved to be the second best year since 2007 in terms of PE (Private Equity) inflows, as India keeps growing as an attractive investment destination. The launch of REITs (Real Estate Investment Trusts) will further increase the enthusiasm of local and foreign investors.
In 2016, the number of residential projects launched was way more than the number of units sold. But now, the RERA Act will force developers to make their system transparent and boost the confidence of consumers.
According to Arun Dev Builders experts, it’s not only RERA, but GST will also have a major impact on how developers run their businesses. The bad players have realized that they either need to buckle up their business or completely change the way they operate.
The residential property market is dominated by end users. Currently, the demand is surging and it is expected to pick up even more by the start of next year. The commercial office space sector is also going to witness an increase in demand.
Co-working spaces are providing flexible options to startups at affordable rents. Even though there is still very less co-working space available, it is surely increasing with time. Co-working operators and corporates will move into a ‘hybrid’ sort of space and increasingly rely on each other.
With affordable housing schemes, 1 crore houses are to be built in 2019. Demonetization has impacted the realty sector in a major way: it is expected to ease land prices in the next few years, especially in far-flung areas around Indian metros and Tier-II and Tier-III cities. The government’s initiative of ‘Housing for All’ by 2022 looks more possible with the increasing demand, say experts Arun Dev Builders.
Some of the developers and investors will try to expand their portfolios, while few of them are expected to take a backseat. The focus will be on consolidation for the Indian real estate industry over the next five years. Big players like Arun Dev Builders are likely to rule the roost by 2021 and smaller players may not be able to survive at all.