India’s real estate sector exhibited amazing potential and growth during the early 2000s. The middle-class and younger population from the non-metro cities ventured out for jobs and began to settle down in the major cities. With increased earnings and better growth opportunities, these people looked towards investments in moveable and immovable assets. Buying a house was on their bucket list and they aggressively explored lucrative options. Additionally, the Government facilitated this population by introducing schemes that were both developer and buyer-friendly. Subsequently, the banking institutions started lending to the segment more smartly and more substantially. The real estate segment in India was in its full galore.
The situation changed and a diverse picture emerged in the mid-2010s. The past few years and last year particularly has been perplexing for the real estate industry in India. For real estate developers and construction businesses, the year 2019 is not expected to be any different. Clearing standing inventory, tackling regulatory changes like RERA, GST and stagnant prices remain the major challenges. The focus now is on promoting existing projects, rather than launching new developments.
Amidst the chaos, affordable housing shows potential. In India, the last few years have seen major investments in the affordable housing segment and the trend looks favorable even for 2019. In addition, since the Middle Income Group (MIG) under the Pradhan Mantri Awas Yojana (Urban) can avail subsidy until the end of March 2020, a growth is predictable in affordable housing. Co-living is another interesting sector coming up vibrantly. Co-living is an explored concept in major metro cities and remain to be unearthed in the Tier-II and III cities. This year, new, all-inclusive, contemporary projects are expected to come up in the bordering areas of the cities.
In 2019, the established names are sure to further capitalize on their brand value and make progress. To stay significant, the brands have to turn to increased use of social media. By fueling customer engagement, encouraging dialog and staying relevant, the brands can harness the power of social media marketing and be favored by the techno-savvy users and potential homebuyers. It is the perfect time to let go of the traditional mediums of communication and engage effectively through richer, global mediums.
Expecting a complete recovery and rapid growth in 2019 is highly implausible. However, a spike in demand and a hike in sales is projected by industry experts. With the general elections in the country, the sentiment is largely dominated by political views and predicted improvements. Like most other segments, the results of the 2019 election would largely determine how things would progress for the real estate sector.
Fundamentally, we assume that the year will be a mixed bag of opportunities and challenges.