Get ready for upcoming waves in Real Estate India this year

The year 2017-18 promises to be an interesting year for one real estate sector in India. After the demonetization, Real Estate Regulatory Bill (RERA) and Real Estate Investments Trust (REITS) can play an important in yielding rich dividends. Also with RERA and Benami Transactions (Prohibition) Amendment Act 2016, India Real Estate market has become one profitable destination of investment.

Here are some trends you can look upto in this year in India –

• More presence in Global Capital – if we see through the World Investment Report 2016 will we see that India is doing very good and occupies 4^th position in Asia. The FDI influx and thanks to the echelons of the India economic strata the India Real Estate has so far earned $32 billion, a huge jump on figures.  With major political changes happening in this sector is flourishing more as a lot of credit is given to strengthened and modernization. Global presence has been witnessed as many NRIs and HNIs are seen investing and buying properties in India.

• More Co-Working space – India is noticeably got into co-working spaces. More working professionals living in hybrid spaces and this have aided startups that have converted non- tradition working places in co-working workplaces. Also many companies lease their space to see the introduction of this concept of co-working spaces. This segment is surely catching boom in India giving many advantages like

• Cost efficiency
• Employee motivation and retention
• Boosted productivity
• Quicker learning curve integrating
• The perfect option for client servicing teams and for those who wants them close to their clients.

• Affordable House on Rise – the government is very keen and serious on Affordable Housing all over India. In this Union Budget 2017 a big step has taken to bestow the status of Affordable Housing and Infrastructure and hence more and more developers and builders are penetrating in the segment. According to 2019 development scheme 1crore affordable houses is the target. National Housing Bank will be provided, extra commercial borrowings to help grow this.

• Greater Industry Consolidation – there has been great industry collaboration and it is a very good sign of collective success i.e. different companies coming together. Numerous joint ventures have bettered real estate sector. There can be effective partnership between in small and big companies. Expert predicts that collaboration between landowners and new builders has been predicted.

• A new business model has launched by Realtors – the implementation of RERA means that a better business model is necessitated. Now that RERA has been implemented from May 1 the developers and builders will want to fall in the line of deadline. Consumer activism will increase in distressed ongoing projects. Also most important is the Goods & Service Tax (GST) will also show some major impact on the developers. Currently the market is dominated by end-users and investors are making beeline out of investments. The demand of residential will definitely be high in end of 2017.

• Commercial / Retail Sector transformation: from REIT to complete- the Real Estate Investment is expected within few months and prominent private equity fund house such as BlackStone will be likely be the first movers. Smaller investors are especially excited at his new and easier investment because –

• Indian REITs will prefer to invest in commercial developments specially in high quality of property
• Only 20% of Indian REITs monies can be invested in developments which is riskiest aspect.

The Real Estate sector is turning into greater opportunity for higher investments and globalization. It will upsurge in industrial and infrastructure activity and rapid urbanization.