New real es­tate trends that are ex­pected to emerge

Even though the re­alty sec­tor is likely to have a tough year, new trends such as af­ford­able hous­ing and co-liv­ing are ex­pected to emerge

Mint Asia ST - - Otherviews - BAY SHWINI KU MAR S HARMA

For po­ten­tial home­buy­ers, the year 2019 is not ex­pected to be any dif­fer­ent from the last few years. Prices are likely to re­main stag­nant and de­vel­op­ers will con­tinue to fo­cus on clear­ing ex­ist­ing in­ven­tory rather than launch­ing new projects as they con­tinue to grap­ple with reg­u­la­tory changes like Real es­tate (reg­u­la­tion and devel­op­ment) Act, 2016 (RERA), goods and ser­vices tax (GST) and over­all sub­dued de­mand.

In fact, 2019 is ex­pected to be an­other tough year for de­vel­op­ers, given the on­go­ing liq­uid­ity prob­lem, ow­ing to the NBFC cri­sis. How­ever, even as the sce­nario re­mains bleak, some new trends are ex­pected to emerge dur­ing the year. Here are a few things you can ex­pect.

Af­ford­able hous­ing

In the last cou­ple of years, af­ford­able hous­ing is the only seg­ment where trans­ac­tions seem to be hap­pen­ing. The trend is ex­pected to con­tinue in 2019 as well.

“We see an uptick in af­ford­able hous­ing sec­tor—both from sup­ply and de­mand side—which leads us to be­lieve that it would be a key driver for the res­i­den­tial sec­tor in com­ing times,” said Shishir Bai­jal, chair­man and man­ag­ing di­rec­tor, Knight Frank In­dia, a real es­tate con­sul­tant.

Govern­ment in­cen­tives to both de­vel­op­ers and home­buy­ers are push­ing sup­ply as well as de­mand within the seg­ment. In a re­cent an­nounce­ment, the govern­ment ex­tended the ben­e­fit of Credit Link Sub­sidy Scheme (CLSS) on home loans for the Mid­dle In­come Group (MIG) un­der the Prad­han Mantri Awas Yo­jana (Ur­ban) till the end of March 2020. A home­buyer can avail a sub­sidy of up to ₹ 2.67 lakh on home loans un­der this scheme.

“It will prove to be an­other ma­jor push to­wards the pro­gres­sion of the af­ford­able hous­ing seg­ment. We are con­fi­dent that this move will set the tone for a pros­per­ous 2019 for the In­dian real es­tate sec­tor,” said Jaxay Shah, pres­i­dent, The Con­fed­er­a­tion of Real Es­tate De­vel­op­ers’ As­so­ci­a­tion of In­dia (na­tional), a lobby of pri­vate real es­tate de­vel­op­ers.

Co-liv­ing op­tions

Co-liv­ing is not a new con­cept, but just got a new name re­cently. Many peo­ple, es­pe­cially stu­dents and young pro­fes­sion­als, pre­fer to share a house or apart­ment, usu­ally with other stu­dents or pro­fes­sion­als. Var­i­ous pri­vately-op­er­ated

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