All, Miscellaneous, Realty
2020 is going to be an exciting year for real estate. According to this study, by 2030, the real estate market in India is expected to have a market size of USD 1 trillion. With a slew of reforms in 2019 such as RERA and housing for all schemes, the real estate sector is poised to become one of the biggest gainers in 2020. So here is a roundup of the emerging trends that will shape the real estate sector in India.
Gone are the days of offices looking for leased spaces to start their operations. Many organizations are opting for co-working spaces to save on astronomical rents and deposits. Co-working spaces are a flexible and cost-effective solution for not just startups and freelancers but also for a company with 100 employees. These spaces are excellent at driving growth and innovation and providing a boost to the productivity of the employees. So more and more offices will jump on the co-working space bandwagon in 2020.
No one can deny the climate change that’s happening. That’s why property buyers and developers are looking towards urban green spaces as a means of sustainable green living to show that they care for the environment. According to this report, urban green spaces allow the dwellers to partake in physical activities. These spaces are also very serene that offer therapeutic benefits. Therefore, one can expect more urban green spaces to come up in metropolitan cities. Further, as part of this trend, sustainable construction that uses environment-friendly resources and processes will be favored over traditional methods.
New age home buyers are always on the lookout for luxury properties. They want to choose gated communities that come equipped with all the facilities. Millennial buyers also prefer ready to move into luxury apartments to minimize the hassle. In fact, some are even willing to pay a premium for under-construction properties Technology enabled smart homes are a top choice for millennials as it allows them to integrate their homes with their lives. Voice commands, biometric authorizations, and smart appliances are some of the non-negotiables for most home buyers today. Therefore, one can definitely expect that the luxury housing sector will experience a surge in 2020.
As the real estate market gets competitive, one can expect more specialization. Developers are likely to specialize in areas such as logistics, affordable housing for students, co-living spaces in urban areas, special houses for senior citizens, etc. This will also help to attract the right kind of investors who want to get involved with specific projects. According to this report, the competition to find the right investors has resulted in developers looking for more niches to specialize in.
Gone are the days of unregulated investments in the real estate sector. The Indian market has finally welcomed the Real Estate Investment Trust model. The performance of the first REIT has definitely instilled hopes for future listings and given a boost of confidence to the investors. One can definitely expect more supervision of SEBI for any investments in the sector. This will also help the industry to flourish and transform itself in tune with the demands of the market.
2020 will mark an extraordinary period in the real estate sector. Real estate has always been one of the biggest pillars for the economy and a major contributor towards the Gross Domestic Product.
The real estate industry in India has come a long way from being simply a brick and mortar project. The new approach is to treat real estate as a product that has the potential of attracting a sizable number of investors than just a one-off project. Technology is also reshaping the way in which the real estate sector functions. However, there will also remain an urgent need to ease the credit crunch through measures such as alternate investment funds.
Developers should try to tailor their offerings as per the demands in the market and the upcoming trends. It is also important to embrace mergers, acquisitions, and joint ventures with an open arm as it will definitely help in market consolidation for the big players in the sector. We hope that the above emerging trends help you to make the right decisions in the sector.