The Indian realty sector is an ever-changing platform that surprises the home seekers and investors with its new trends emerging every now and then. The metropolitan cities are witnessing a huge transformation due to the rapid urbanization process. The demand for new homes has increased considerably in the medium sized to large cities due to the expansion of the population.
The population in these cities is estimated to touch 814 million in 2050, as per the survey done by World Economic Forum. On the other hand, a whopping 70% of the urban population is concentrated in 6% of the urban settlements. It means that the current market is going to rise and proliferate. The latest trends in the real estate market in India will show various trends in 2019.
Real estate trends to witness in 2019
Huge growth in GDP and urban settlements
More than 70% of the gross domestic product is contributed by the urban part of our country. Every city will require a calculated proliferation of the boundaries so as to avail new land for development of residential projects. As per the report published by McKinsey Global Institute, a projected figure of 700 to 900 million square meters of real estate properties will be developed each year in order to accommodate the escalating population in the urban segments.
Investment from big brands
By 2020, the investable volume of real estate market will increase to US$ 45.3 Trillion. In fact, this figure will take an overwhelming size of US$ 69 Trillion by the end of 2030. The competition among the emerging economies to attract more investment will be dominated by India due to the presence of resources and available space. This particular segment will be positively boosted by the transparency in the real estate segment brought by the implementation of RERA.
RERA will be more solidified and fortified by the authority so as to stop the biased decisions taken by the real estate developers. It is a big plus point for the investors and families who are seeking new properties in the urban parts of the country. The implementation of RERA Act 2016 will bear fruit as the potential real estate industry will become more organized and controlled. The initiation of the fair practices and the core adoption of professionalism from the real estate developers will bring an immense change.
New models for business
Due to the unorganized approach of developing new projects, most of the players went bankrupt causing the industry to seek more balance. The developers are now intending to invest in an organized way by following specific business models. These proven models will make this business more sustainable and the price of the units will automatically reduce.
Due to the lack of faith from the Reserve Bank of India, the real estate developers lost a good source for borrowing money. This is where the private equity and foreign investment entered the field. A huge growth in Indian GDP resulted in the more investment from foreign bodies. Due to the intelligent implementation of RERA, the foreign investors are eyeing transparency in the process and are willing to pay more attention.
The green footprint in the real estate industry increased from meager 20,000 square feet to 4.5 billion square feet. India now accounts for 10 to 12% of the green building volume globally.
Introduction of technology
It is really tough for the home seekers to find out whether the project will be impressive or not. The introduction of VR and other audiovisual platforms will allow a virtual tour for the interested customers opening a doorway for quicker and better investments.
Even the bigger brands are inclining to provide affordable housing plans for the families to afford. The average price of the assets will reduce and become more affordable.
Tier II Cities
The real estate brands will focus more on the Tier II cities to design and provide elegant projects in 2019.
In order to quench the thirst of tech-savvy generation of millennials, the new projects will offer excellent home automation solutions for better convenience and comfort.
These are the elegant trends that will reshape the real estate industry in India in 2019.