For the real estate industry, 2017 didn’t live by the expectations, and the market was on a slowdown from the beginning of the year due to the implementation of game-changing policies by the government. Although demonetization was one of the most unexpected changes that hit the market. RERA and GST also needed some time to be invested in the real estate market.
Contradictory to what most real estate experts were saying, statistics suggest property prices became stable towards the end of 2017. According to Assotech Limited, three significant implementations, Real Estate Regulation Act (RERA), GST and REIT, will stabilise and recover last year’s stagnant real estate market. New laws/regulations will improve transparency in the system, eventually boosting the confidence of customers and investors on a large scale.
For 2018, with new policies in place, Assotech Limited believe it is going to be different! Let’s talk about top real estate trends of 2018:
Increased Global Capital Flow
World Investment Report 2016-17 by the United Nations Conference for trade and development shows India ranking 4th for FDI inflows. Improved regulations, GST norms and increased transparency have made India a lucrative market for investments globally. The capital flow & private equity is expected to grow in the next few years even more. Non-Resident Indians also find residential apartments in Delhi, Gurgaon, and Noida more dependable.
Restored Business Model
A game-changing real estate trend is here. Earlier, delayed project delivery was a familiar sight for real estate customers because developers use to announce several projects without being sure of their delivery date. Now, under RERA act, developers will be bound to complete projects by a given deadline. It is going to bring the much-awaited change in real estate developer’s business model. All real estate companies in Delhi will operate with transparency and accountability.
Some other vital regulations that will change how developers function in Delhi-NCR is GST, Benami Transactions (Prohibition) amendment act 2016 and REITs.
More Hybrid Spaces
With growing start-up culture, India is also scurrying towards co-working culture in the metro cities. Commercial property in Noida & Gurgaon and shared workspaces are becoming more common than before, where people lease a part of office spaces and work alongside strangers. This format aids small businesses who don’t need or want to spend much on essential office facilities. Hybrid areas are increasingly in demand for the “no strings attached” kind of set up and affordability.
The Union budget of 2017 introduced affordable housing projects for rural development, which states that one crore affordable houses will be completed by 2019 in the rural sector. External commercial borrowing (ECBs) and re-financing of housing loans provided by National Housing banks (NHBs) will facilitate the growth of affordable houses. This will ensure that affordable housing sector gets more attention from real estate companies in Delhi-NCR area.
Increased Industry Consolidation
In last few years, we have seen a rise in real estate companies, developers and commercial and residential projects in Delhi-NCR. Also, we saw this year was very slow for customers because of new regulations and government policies. 2017 has left real estate sector with a vast inventory, and one of the most expected real estate trends going forward will be the joint venture. Renowned real estate companies and builders in Noida, Gurgaon and Delhi will come together with smaller players in the market to improve the prices in the sector.
Office Sector Transformation
As REIT gets listed, real estate companies will be able to arrange funds for construction conveniently. This implementation is likely to attract small investors backed by the confidence in the new system. Knowing that their investments are safe, investors will feel more confident & secure about their money.
Amid recent government initiatives and upcoming 2018 real estate trends, customers will feel the difference with more transparent transactions. Concluding on this note, Assotech Limited is optimistic about how this coming year will prove to be productive for the real estate companies in India and investors.