In 2017, six major real estate trends have been visible in the country. Various reforms are taking place in the investment policies and the availability of funds with the investors has delivered a boost to the real estate sector. Have a look at the trends that have dominated the real estate sector.
Increased global capital flow
As per the reports of the World Investment Report in 2016, India is placed in the fourth position for FDI inflows in developing Asia. With changing regulatory policies in the real estate sector in India, both foreign and domestic investors are turning to buy properties in the country. The REITs have been launched, which has further facilitated the real estate investment in India in 2017.
Revamping of business models by the developers
One of the most significant trends in the real estate sector is the inception of RERA. The regulatory authority has taken measures to ensure transparency in the real estate business. Evidently, the developers are revamping business models to comply with the guidelines.
Co-working
Co-working refers to space sharing, a trend evident in the metros and Tire-II cities of the country. It boosts up cost-efficiency, retention of employees and increased productivity. Business firms are taking innovative measures to utilize the available spaces.
Affordable housing
Cheap housing facilities for the middle and low-income groups has been one of the key trends in the real estate sector. As many as one crore houses are to be built by 2019. Correspondingly, home loans and funds are coming in easily, thanks to the reforms in the banking sector.
REITs
The launch of REITs has leveraged the investment in the real estate sector to a substantial extent. Indian REITs prefer investing in commercial spaces. Investment in residential property, too, has received a boost.
Consolidation of industries
The real estate sector is likely to get consolidated due to the lack of funds among several developers. Joint ventures and investments by large companies are on the cards, and the industry will get cleaner with the elimination of several developers from the competition. Organizations like JLL are operating in several cities.
These trends have emerged in the Indian real estate sector in 2017.
