2017 was significant for the Indian economy, especially for the real estate sector. There were several amendments that changed the status of the Indian real estate market. The aim was to remove black money and refine market transparency to make the residential property sector much better for investors and consumers.
In general, 2017 was an eventful year for the Indian residential real estate, given the demonetisation just the year before. Plus, the housing supply was enough with the prevailing demand, and low-cost housing was still there.
So, what can we expect in 2018? Will it be the same? Or will there be any changes? Here are a few emerging trends in the Indian Real Estate, this 2018.
Again, affordable housing will remain this year. These include housing units that are affordable and low-cost by that portion of the society whose salary is below the average household income.
The government of India has allocated Rs. 8 billion just for affordable housing. Thus, it’ll stimulate the real estate sector this year with various housing developers however funds checking at the right opportunities in this sector driven will drive better returns.
Also, home sales all over the nine major municipalities of India observed a downturn of 18% during the second quarter of 2018, in comparison to the very same quarter last 2017. As such, low-cost housing will now be the most feasible choice for those, who would want to buy homes now, since the process will have to be in a standardized, legitimate way.
Strengthening the Real Estate Sector
This 2018, experts predict that the real estate sector will become meaner and leaner. Meaning, fly-by-night promoters, and smaller players will get disintegrated. As such, big companies or organizations will run the market.
Those promoters who aren’t capable of qualifying with the Real Estate Regulatory Authority (RERA) norms will most likely consolidate with the bigger organized developers. That said, it’ll bring more confidence in the real estate sector as consumers or homebuyers feel safer against being deceived.
More People will buy new Homes
The consolidation of the high prices, excess supply, and low demand has interpreted into massive inventories all over India. With that said, 2018 will certainly be a buyer’s market. But, take note, this situation is not for long.
With Real Estate Regulatory Authority in place, housing developers are now aiming their attention on finishing their current projects. According to the government’s industry research reports 2017, housing developments, all over India, have descended by at least 75%.
Also, the entire number of housing projects have decreased by at least 40 percent. It only implies that the housing supply will progressively find some balance between the prices and demand, and will start seeing its pace.
But, this 2018, there will be more housing supply, and homebuyers are in a great position to discuss, and eventually get a great deal. The Mumbai Metropolitan Region (MMR) and National Capital Region have around 2 lakh ($200,000) and 1.8 ($180,000) lakh unsold properties respectively, as per industry reports.
Low Home loan Interest Rates
The overabundance of available liquid assets in the banking system have driven the Reserve Bank of India (RBI) the necessary lending rates. As a result, the home loan interest rates that were listed were at least 9.5% in 2016 and have now been soaring between 8.3–8.4%.
As such, the equated monthly installments (EMI) costs have become more considerable than ever, enabling homebuyers to take advantage of affordable home finance, and eventually become a property owner. Thus, in 2018, homebuyers can expect for low home loan rates. However, it’s still important to seek financial advice from any legal firms.
Of course, prosperous cities draw more and more people. Thus the worth of prime urban real estate will increase and rise. As such, this will drive the development of smaller apartments and urban density, and also in the vying for space will get tough.
With that said, housing developers will try to be more creative and ingenious about how they’ll design and construct residential and commercial spaces. In 2018, apartments will have a maximized living areas to ensure that homeowners will get more out of their home without wasting a single space.
The housing developers in India will recall 2017 as a tribulation in the country, and hopefully, hope for the better this 2018. As predicted, more and more people will gain confidence in the realty sector, and 2018 will observe a slight market recovery, enhancing sales, and decreasing unsold units.
So, what more can we expect in the Indian real estate this 2018? Well, affordable housing will remain, there will be a consolidation or merging among brokers and developers, more demand, low home loan interest rates, and there will be a more ingenious way of building homes.