The year 2017 has come and gone. The performance of the real estate sector was not very promising in 2017 in terms of growth and sales. The year saw significant changes and introduction of GST which had a major impact on the real estate market. Policy changes like demonetisation and RERA which came into force in 2016 also had an impact on the market during the previous year.
India is one of the fastest growing real-estate markets in the world attracting domestic and international investors. The investment options include commercial as well as residential projects.
2018 is expected to be a brighter year for the real estate industry. While the growth may not be phenomenal, it is expected to be sustainable and backed by solid market fundamentals.
Some of the real-estate trends are:
A rise in co-working culture has seen the emergence of ‘hybrid’ spaces. Companies that do not require too much area are leasing out their additional space giving impetus to the concept of ‘hybrid’ space.
This sector is going to see a sharp rise in 2018. The government is supporting this sector by awarding it a much-required infrastructure status. The definition has also changed to cover a larger buyer base and help developers sell their budget homes inventory.
Increase in Consolidation
There will be an increase in mergers between the developers. This in turn will attract investors and the price earnings ratio will improve.
Global Investor Fraternity
Regulatory mechanisms have encouraged the global investor fraternity. The real-estate sector is expected to receive PE investments to the tune of $4 billion during the year. Funds from Canada and Singapore are also expected to invest money. Global sovereign funds which are not known to take risks are also increasing their exposure to the real-estate sector.
Lowering of home loan interest rates
Thanks to the excess liquidity in the banking system, the RBI has lowered the key lending rates. This increases savings on EMI encouraging buyers to become home owners.
To sum up, with the growing trends in the real-estate sector, the current environment presents a good opportunity to invest in property in 2018.