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Real Estate Market In India Is All Set To Make A Strong Comeback In 2019

Indian real estate industry is one of the most distinguished markets globally. While real estate in India has witnessed a distressing phase in the last few years, the sector is all set to make a strong comeback, starting 2019. A lot of new trends are expected to emerge in this year which will boost both growth and revenue for both real estate buyers and investors.

Real Estate Market In India Is All Set To Make A Strong Comeback In 2019

With a number of new projects in the pipeline and robust absorption expected, the future years look bright and positive. So, if you are looking forward to buy your dream house in year 2019, here are some facts that can help you strengthen your decision.

Increasing market size ushers growth and prosperity

The Indian real estate sector is expected to grow at a steady Compound Annual Growth Rate (CAGR) of 11.2%, touching US$ 180 billion by year 2020. Not only the residential sector, even commercial, retail and hospitality realty sectors are also expected to grow significantly, providing the much-needed infrastructure for growth and making investing in real estate in India a promising proposition.

2019 will prove to be the year of renewal for Indian real estate industry. With a strong focus on affordable housing segment, more transparency due to strict government norms and rapid influx of people to Tier 1 and Tier 2 cities, the growth rate of landed property in India is only bound to grow.   

Big bang reforms intensify progress

Major governmental reforms like the establishment of RERA committees and GST have proved to be the major contributors that will further intensify the growth of this sector. The development of smart cities, construction of affordable houses under the Pradhan Mantri Awas Yojana (PMAY), increased transparency created by RERA, and robust urbanization will help Indian real estate market shift gears and encourage both growth and demand.

Below are some of the major government initiatives that are offering strong growth opportunities to realty companies in India:

  • Government has sanctioned Rs 60,000 crore in February 2018 under National Urban Housing Fund.
  • A total of 1,427,486 houses are scheduled to be constructed under the Pradhan Mantri Awas Yojana (PMAY).
  • The development of 100 smart cities has further fueled residential sector growth in India.

Developers are quickly revamping their business model

Thanks to the establishment of strong government regulatory bodies like RERA, real estate developers now are more accountable and are required to bring more transparency in their processes. Most of the fly-by-the-night developers are now out of the market and the realty sector is now packed with serious developers and reputed real estate agents who are equipped for sustainable growth and development and work as per their project completion deadlines.

Rapid urbanization ushers increase in housing demand

For better education, superior lifestyle and enhanced job prospects, more and more millennial are heading towards the Tier 1 and Tier 2 cities of the country, leading to rapid expansion of these cities and making them an investment-friendly destination for both Indian as well as NRI investors. This has lead to a number of new residential launches, both private and government, in these cities, with Bangalore and Mumbai being the top contributors in terms of both sales and revenue. While Mumbai is the top contributor of new launches in the past two years (31%), Bangalore stands second with around 20%-22% of new launches in both residential and commercial sector.

In fact, equity investments in real estate are expected to grow to a tune of US$ 100 billion by Year 2026.

New realty sectors are gaining quick momentum

New housing sectors like student housing and senior citizens housing are the new bright stars in the realty industry and are quickly gaining rapid momentum in the city, especially the urban cities. Since this space is still naïve and unorganized, the unmet demands are really high (around 30%-60%), which provide bigger, better opportunities for growth in this sector. Many large investors, including Mangrove Capital, Goldman Sachs, and Prestellar Ventures are making a foray into this sector.

Senior living is also experiencing an increased activity in the realty sector with the senior population expected to grow to 240 million by 2050.

 With all this and more, the real estate industry in India is on its fastest recovery path. The steady implementation of RERA, strong regulatory framework, transparent pricing norms, and increase in housing demand makes the future of realty sector bright and promising. Investing in Indian real estate sector in 2019 could be the deal breaker for you if you are planning to diversify and grow your funds in real estate and reap its future benefits.

John Paul
John Paul
John is a full-time blogger and loves to write on gadgets, search engine trends, web designing & development, social media, new technologies, and entrepreneurship. You may connect with him on Facebook, Twittter and LinkedIn.

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