2018-2019 Trends In Indian Real Estate
Tuesday, 15 January 2019

The last couple of years have been fairly significant for India’s real estate sector. With the implementation of economic and regulatory reforms like GST and RERA, the country’s real estate sector has witnessed a major transformation in terms of becoming more transparent and efficient. Some other noteworthy changes in the recent years include the hybridization of workspaces, increased foreign direct investment, the emphasis on affordable housing, and REIT-based investments.

Here’s a look at the 2018-2019 trends in Indian real estate:

    1.The rise of hybrid workspaces:

Traditional office spaces are making way for hybrid co-working spaces, with the rise of the gig economy and the evolution of the work culture in India. Corporates and co-working operators are now working in tandem, which in turn benefits the real estate economy and also increases cost-efficiency, workplace productivity and employee retention.

    2.Greater investment through REITs:

REITs operate in a manner similar to that of mutual funds. A REIT can be recognized as a pool of funds by a sizeable number of investors, and these investments are made towards rent-generating properties. In the Indian realty market, REITs can play a major role to solve the problem of unsold and unoccupied inventory, which is a big challenge facing the Indian realty sector today. REITs can help mobilize the returns on these properties, while offering investors tremendous diversity when it comes to real estate investment.

    3.Increased FDI into Indian real estate:

With the introduction and growing popularity of REITs (Real Estate Investment Trusts) in Indian, there has been a marked increase in FDI in the real estate market. REITs make it easier for global investors to diversify their investments. Additionally, the enhanced transparency and efficiency in the real estate sector has further invited FDI.

    4.The rise of affordable housing:

The government of India plans to build one crore new houses in rural India by 2019. The Housing For All vision is expected to materialize by 2022, and affordable housing in India is being given great emphasis and attention in order to meet the target that has been set.

    5.The reinvention of real estate business models:

Regulatory reforms like RERA, GST and the Benami Property Act have enforced a greater level of transparency, accountability and quality construction delivered-on-time, which has made the work of real estate developers much more promising. In order to deliver on these promises, developers are reinventing their business models and projects are much more compliant with the stated standards.

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