Real Estate in 2019: The Synopsis


With the year 2019 coming to an end, the industry is moving towards the bigger goals, stronger resolutions, and higher growth. One of the most globally recognized sectors and renowned for inviting non-resident Indian (NRI) investments in large numbers – the real estate sector is transforming the country by leaps and bounds. While the Indian economy has seen several ups and downs throughout the year, the first two quarters have been enormously rewarding for the real estate sector.

Real estate is comprised of four sub-sectors - Residential, Commercial, Retail, and Hospitality. Hence, the sector is impacted and very well complemented by the growth in any of these, such as the corporate environment in a certain region or the demand for office space as well as residential spaces. Here, we’ve accumulated the thoroughly studied changes in the real estate market throughout the year 2019.



The Flourishing Commercial Real Estate in the Year 2019
According to a global property consultant, investment in the Indian real estate sector is estimated to have increased by 9 percent during this calendar year on higher inflow from foreign funds. Office properties attracted 46 percent of the total inflow and received nearly INR 20,000 crore this year. Keeping an account of this wave, the experts of the property market in India expect a flurry of commercial investment activity in 2020 and 2021.

RERA has Made Real Estate Sector a More Organized Sector
RERA has made the real estate sector relatively transparent by bringing new reforms in the industry. A barrier has been put upon the false commitments related to the project deadlines and the built-up area/super built-up area of a property, as it is mandatory for the builders to quote the ‘carpet area’ in all agreements and the builders are charged with the stiff penalty in order to not finishing a project till the deadline promised to the buyers. With a few short-term negative impacts of RERA, the real estate sector has now become a lot more organized as the developers have to be extremely cautious about new projects and make sure that all approvals are in place before any launch.
The Initiatives by the Government
The Government of India has taken several initiatives to encourage the development in the real estate sector, such as the smart city project - a plan to build 100 smart cities, and more than 8.09 million houses sanctioned up to May 2019 Under the Pradhan Mantri Awas Yojana (PMAY) Urban. Offering the real estate companies the prime opportunities to grow, the changes such as price correction or circle rates revision for certain areas have brought a balance.



The Trust Revived in the Real Estate Sector
With the organized procedures, practices to emit corruption, fulfilling the commitment made to buyers related to the possession and construction quality of a project, the factor of trust has been revived in the industry. Whereas, the real estate industry is changing the face of urban as well as rural India by introducing the latest concepts with the advanced technology and modern construction techniques, the strict practices of law and order have worked towards rejuvenating the trust among the investors.

Improved Connectivity
Infrastructural development has played a key role in improving connectivity. The construction of new roads, bridges, airports, flyovers, and underpasses has blessed us with the ease of access from one point to another, whether you’re traveling within a city or to a different state. Government projects have given the path to the overall development of the economy by creating employment opportunities and moving towards advancement.

Prediction for 2020
From an expert’s point of view, the year 2020 looks promising. Due to the timely completion and delivery of the projects, the sector will gain more confidence and the buyers will be encouraged to invest in realty. More consolidation, mergers, and some large stuck realty projects are expected to be revived by government funds. Also, considering a number of factors that are enhancing the standards of living, demands for housing will see a rise in 2020 most probably.



References: Media Reports, Economic Times, Press Releases

Disclaimer: This information has been collected through secondary research and Elite Landbase is not responsible for any errors in the same.


For More Details:-
+91-97161 11107
7th Floor, Golf View Corporate Tower,
Golf Course Road, Gurugram, 
Haryana, India

Comments

Post a Comment

Popular posts from this blog

Architecture - Contemporary Vs Modern

Image
Two words that you must have heard in terms of the architecture of the upcoming developments are - “modern” and “contemporary”. While a lot of descriptions for various beautiful residences use these two words in their advertisements, a large mass of audience doesn’t really know what exactly do they mean and how they are different from each other. Even though the words are used on a regular basis and are thought of as the same, there are certain elements that differentiate them from each other. Below are some details about the two that will help you better understand the terms “modern” and “contemporary”. Read on! Basic difference Simply, modern architecture is a type of style that was originated between the early years of the 1900s to 1950s and hasn’t changed for a long time. It is a much-defined style with minimal changes over time, hence when you claim a house to be built in “modern” style, however, it’s different in terms of architecture. Against this, pinpointing...
Read more

Moving towards water security – The need of the hour

Image
Around 80% of the world’s population suffers a severe threat to its water security. 783 million people do not have access to clean and safe water worldwide out of which, 19% of world’s people without access to clean water live in India. Come summer and hue and cry above water availability becomes breaking news in Gurgaon. People become highly dependent on water tankers and illegal bore wells, exploiting groundwater tables that are already depleting at an alarming rate in the city.  Further, the effects of climate change on water availability has become more apparent in recent years. The rising mercury level and the water scarcity compound the hardship faced by Gurgaon citizenry. The city is growing by leaps and bounds and with fast pace urbanization, the importance of water as a scarce resource is gaining a strong foothold not only in the residential spaces but also in the commercial setups.  Founder, Elite Landbase , Navdeep JP Sardana says, “Water being a natural re...
Read more

Investor Confidence Rises in the Realty Sector in India

Image
Investor confidence rises in the realty sector in India as they pump in a record $2.5 billion or Rs 17,600 crore in the first quarter of year 2019. This is recorded as one of the highest first quarter inflows since 2008. The upward movement is supported by the regulatory changes in the sector like RERA, GST and Demonetization and the launch of the first ever REIT (Real Estate Investment Trust) in India, which has given an unprecedented boost to the investors’ confidence in the market. The first REIT listing, during the quarter (Jan-March 2019), by Blackstone-backed Embassy Office parks to raise Rs 4750 crore was well received with an over subscription of 2.57 times. This has opened doors for the retail investors to invest in the real estate. REITs are like mutual funds for the real estate sector. They collect funds from investors and put the money into real estate. The returns they earn from rental income and sale of property is distributed as dividends to investors. So ret...
Read more