The real-estate industry is on the verge of transformation and the past decade has played a major role in molding the sector. Owing to a series of structural reforms with the advent of RERA, industry consolidation, policy change, fast proptech growth and so on, the realty sector and its auxiliary industries have witnessed increased transparency and trust between buyers and builders. Additionally, the “Housing for all” scheme has further accelerated the growth of mid-income and affordable housing segments. Therefore, acquiring a 2 BHK flat in Ghodbunder Road or elsewhere has become easier than ever.
The real estate industry has certainly transformed from brick and mortar to a more service-driven product offering. The sector’s growth will be driven by technological transformations, dynamic customer requirements and a favorable policy environment that paves way for the industry to flourish. These advancements display a beneficial future for the industry at large. According to the Indian Brand Equity Foundation, the Indian real estate sector is expected to reach a market size of US$1 trillion by 2030 and contribute immensely to the country’s GDP by 2025. Below mentioned are a few interesting trends that will be guiding the outlook for the sector:
Rising Adoption of Technology:
Digitization was welcomed with open arms in 2019 and the trend is expected to continue in 2020 as well. New techniques are being adopted by the builders and developers in both urban and rural areas. The central government is also all set to announce the of an e-commerce platform designed specifically for the real estate sector to improve the transparency associated with buying or selling property.
Ensuring Lower Risks on Investments:
Unseen political risks may erupt, affecting real estate leaders, investors, and consumer behavior. The schemes that might have appeared lucrative at the onset can prove to have higher risks associated. Therefore, to ensure lower risks on investments, one needs to be in sync with the government. The local governments in emerging economies will be leading development initiatives in urban housing and infrastructure.
Market Size Expansion:
Starting from 2010 till now, the quantity of investment-worthy real estate has doubled across the nation. With rising urban migration, increasing per capita incomes and strong emerging economies, this market expansion rate is expected to continue through the next decade.
Growth of New Segments:
While affordable housing had remained the main focus for buyers and sellers in 2019, many different categories are waiting to be explored in the coming year. Developers are diversifying and exploring new arenas in real estate. This is done to offer solutions to niche segments, customized as per their requirements and meeting the demands of senior living communities, co-working, and co-living spaces, healthcare facilities, student housing options and other segments such as plotted developments and townships.
Investors to Diversify Their Portfolios As Prime Assets Become Scarce:
There’s an ongoing battle for prime assets. Therefore, investable prime properties in the country are facing scarcity. To keep their investment portfolios diverse and in sync with the current demands, the investors will have to develop their own share of prime projects. The wealth generated by the developing economies will be utilized towards the development of markets which are still at an infant stage or other emerging subsectors such as agriculture-led rural housing schemes and retirement villages.
It is evident that the real-estate authorities have acquired a pro-buyer stance to transform the market into a more consumer-centric one. The year 2020 and beyond is going to be a year of fresh activity and sales. Whether someone is planning to invest in luxury flats in Thane or looking for an affordable option elsewhere, buyer sentiments are all set to witness a boost, given the current market scenario.
