Will next 5 years bring upswing in real estate industry?
Did you know India is in the list of top 10 International property markets in the world? Acording to a Q2 2017 report by Knight Frank Global House Price Index, considerablegrowth in mainstream residential rates is the reason why India’s rank has jumped 13 spots and reached the ninth position.Considering the boom in this industry in the past few deades, the next five years will surely be promising for investors as well as developers.
It is expected that the real estate market in the country will touch US$180 billion by 2020. Even the market size of the housing sector in India is expected to increase at CAGR (Compound Annual Growth Rate) of 11.2% by 2020. With the government introducing new laws like RERA (Real Estate Regulation Act) and GST (Goods and Services Tax) and implementing demonetisation and home loan rate cut, the Indian real estate market is ready to get its mojo back. These factors coupled with reduced property rates will be dictating the outlook of this market for the next three to four years.
According to the property experts, consumer confidence that got heavily impacted in the last three to four years will now be addressed with RERA. As RERA will get implemented across all cities in India, consumers will start getting what was promised to them. They will obtain delivery of the unit within the committed time frame. More accountability and trans-parency from the builders and developers will be required which will make investment easier in the coming years.
The real estate industry in metropolitan cities, including Mumbai is going through a transi-tional phase; however, things will surely get better with time and the reforms will shape up the industry in favour of buyers. For instance, increased demand for 2 and 3BHK segment, preference for ready-to-move-in properties and reforms like demonetisation and RERA are having significant impact on market trends in Mumbai’s real estate sector. Buyers are also willing to pay premium for reputed real estate developers in Mumbai.
Investors can expect higher returns from property investment in the next five years. It is expected that the growing flow of FDI will also encourage more transparency in the mar-ket. Real estate developers in the country are also shifting gears and accepting fresh challenges which means, buyers can expect various positive outcomes in the next five years.