For homebuyers looking forward to the year 2019, in order to buy a new home: The market is not expected to be any different from the last three years. Prices are likely to remain more or less the same and the real estate builders will continue to try on clearing existing projects or inventory rather than investing their money on new projects as they continue to come in termswith changesin the regulatory acts like Real estate (regulation and development) Act, 2016 (RERA), goods and services tax (GST) and overall fall in demand in the Real Estate Market.
In fact, this year is also prospecting to be another challenging year for real estate developers, all credits to the current liquidity problem, owing to the NBFC crisis.
However, much like a silver lining in the grim prospects, some new trends are likely to develop during the year. Here are a few things you can expect to trend in the market in the year 2019.
Trends in the Real Estate Market:
- Housing at Affordable Prices: In the last two or three years, economic housing is the only sector of real estate where transactions seem to be rolling. This is a trend which according to market analysts will continue to stay in 2019. There is an uptick from both the demand and supply which the market agents consider to be a positive sign.
- Government Incentives in the affordable housing sector:The Government incentives which are being offered in the affordable housing scheme, are encouraging both developers and homebuyers which is resulting in pushing supply as well as demand within this segment.
- Demand for houses and apartments for Co-Living: Co-living as a concept is not unheard of. But it has been gaining popularity for the past few years, many people, mostly students and professionals who are shifting base to new cities, areopting to share a flat or studio apartment, usually with other students or professionals. This concept is steadily overtaking the idea of residing in lodges or hostels.
- Demand for Co-Working Spaces:On the commercial real estate market front, the percentage of co-working spaces in total office rent or lease increased to 10% in 2018 from 5% in 2017. The experts except for more supply which is likely to come in the near future. Leasing of work places is expected to take a giant leap in 2019. In addition to strong demand for start-ups and small and medium enterprises (SMEs), large mainstream corporates are also actively looking at expansion of work places.
- REITS: India is expecting to launch the first Real Estate Investment Trust. Although the first draft of the act was prepared as back as in 2013, lack of clarity on tax implication was creating obstacles for the REITs to become a reality. But in the last few years, government has thankfully put behind many hurdles.
To conclude this article, the developing real estate projects, and close proximity to numerous business districts in the states of Mumbai, Delhi and Bengaluru had increased the inflow of a lot of young buyers last year and will continue to do so in 2019 as well, and finally this is the upward trend the market is looking forward to.