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
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.
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 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