With an economy slow down witnessed this year, the performance of the real estate industry was majorly affected. However, the market remains healthy, and economists believe that real estate will pick up the pace in 2020. The challenges are going nowhere, but the sellers and buyers can make the most of the opportunities. What will be the deciding factors and trends for real estate in India? Read below the forecast for the year 2020.
1. Sellers, be watchful with the requirements of millennials
Not just in India, Millennials are reportedly the largest group in the world as home buyers. They have been a powerhouse for five years in a row. They earn a decent salary and millennials from the age of 30 onwards start investing in residential properties. They are also the same category of customers who are actively using the internet. Therefore, sellers should upgrade their online listings with as many options and offers to attract the millennials. Sellers should start investing big on their websites and other digital platforms to enhance their products and make them look more appealing along with the details.
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2. Affordable homes will continue to rule the housing segment
Launched in 2015, the responsibility for the government to complete their ambitious project 'Housing For All by 2022' is left with only a couple of years. The scheme of constructing and selling affordable homes have so far benefitted the builders, especially small players in the market. With the same amount of features, quality construction, and other benefits available in the affordable homes segment, home buyers find it lucrative to invest in one. The scheme is made available in metro cities, tier 2 cities and other smaller regions in the country.
3. Technology empowers real estate
Not just in terms of better showcasing of properties online, technology has empowered the builders by increasing the quality standards of construction and reducing the time taken to build the projects. It further allows them to fulfil their promises on time, and buyers can expect the possession of their property as per the mentioned date. Therefore, with the help of technology, builders will have more control over labour and project cost. On the other hand, those who can offer the service of augmented and virtual reality are influencing potential buyers to experience their future property without physically visiting the site. Such revolutionary concept of technology will boost the confidence of both parties.
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4. Commercial real estate is likely to drive more foreign investments
Commercial real estate has shown impressive growth in all the major Indian cities. Unlike the residential real estate, which had a positive outlook in selective segments, commercial remains a win-win situation. According to the data, Indian real estate has attracted around $14 billion of foreign private equity between 2015 and 2019. With commercial real estate remaining organised, transparent, and profitable, foreign investors are likely to increase their investment amount more in India.
The year 2020 will be of more focus on unsold inventories and less of introducing new residential projects. With ₹ 25,000 Crores fund from the government for stalled housing projects, the sector will hopefully revive.