It was a huge disturbance for the entire country when it was hit by the demonetization move, and the real estate sector was not an exception. It was said that business will be down this year in 2017 and property prices are expected to go down by 20% to 30%.
India’s real estate industry is a vital part of country’s economy. Major employment is seen in this sector and it plays a key role in infrastructure development and connectivity. The growth of real estate sector is seen through a strong economic growth of the country.
A larger share of India’s economy accounts for consumption since the start of this century. The finance industry has been growing and with repeated interest-rate cuts by the central bank, there have been almost perfect conditions for property purchases.
Let’s see how 2017 will be treating Indian real estate market:
Developers will recondition their business models
In the previous year, the launch of the new residential project was lower that units sold. Now the states are concentrating on the versions of real estate regulation and development and they are definitely falling in line. This is going to increase the transparency for developers into the system.
More of India Inc. expected to move into ‘hybrid’ spaces
Co-working spaces are happening across Indian metros which provides startups flexible working options and at affordable rates. In the space across India, there were more than 100 operators. These hybrid spaces are surely a boon for India, providing several advantages.
Demonetization impact on residential real estate
Industry experts have said that builders will be more open to compromising on property price and other benefits after demonetization. Demonetization brought a bad outcome for home buyers for a short time period. In luxury housing, prices are expected to fall which will bring more options for home buyers.
Our honorable prime minister, Shri Narendra Modi has an ambitious plan of providing housing to every citizen by 2022. He is focusing on affordable housing for this mission. It is expected that people are going to shift from rural to urban areas which will increase the demand for affordable housing by leaps and bounds. This trend is likely to continue in future, too.
The government has huge plans for infrastructure and data shows that from 31 per cent at present, 40 per cent of India’s population will live in urban areas by 2030. The process to create urban centers is are all part of new trends of the market and central government programs, the Smart Cities Mission, and the Swachh Bharat Mission are all striving to create world-class cities. In the dictionary of Indian real estate, urban infrastructure will remain a repeating term.
Infrastructure is gaining momentum and foreign investors are now welcome to invest in the sector. Around 15% of GDP is composed because of housing. According to the world investment report in 2016 by the United Nations Conference on Trade and Development, India ranked fourth in developing Asia for FDI inflows and real estate saw equity investment on a very transparent return journey to India last year.