The Indian real estate sector is continually in the state of evolution. Be it numerous reforms introduced in the sector lately or the changes in the taxation system, the segment has seen many ups and downs in the past few years.
RERA has undoubtedly brought in transparency and accountability into the Indian real estate, thus, reinstating a sense of confidence among buyers and investors. With Real Estate Investment Trusts (REITs) taking shape anytime sooner, 2019 does seem to be hopeful.
Here are some of the major trends that are expected to shape the real estate market in India:
Rise of co-working segment:
Well, this is definitely a no-brainer as 2018 saw a massive rise in the co-working segment. In fact, in the past five years, the concept of co-working space has grown to include more than 200 players.
With the growth of online shopping, developers are now forced to shift their focus on warehousing as well. With GST unifying India’s 29 states into a single market and small fragmented networks being consolidated into large distribution chains with centralized hubs, warehousing will become the center of attention in the real estate market.
Small developers are and will continue to reach out to the reputed ones to help save them from the financial mess and help complete stalled projects. Joint developments, JVs and development management agreements between smaller developers and larger bigwigs was seen on a rise in the recent past and is expected to continue in 2019 as well.
Gross office absorption in 2018 grew by more than 20 percent since last year, Money Control reported. The trend is expected to continue owing to renewed interest from BFSI tenants and further expansion by technology companies.
The government’s focus on affordable housing will now bear fruits as there will be enhanced traction in the segment. Now that the developers are trying hard to align sizes of residential units to suit the budget of end-users, sale in the affordable housing segment is expected to rise further.