Post demonetisation movement, India’s real estate growth has suffered a major blow.
In metropolitan cities across the country, sales in real estate have suffered a major setback.
Given the dynamic changes being introduced by the government this year, real estate is trying to follow newer market trends to cope with the pressure.
Through the course of this article, we will be looking at the top new 3 trends which are going to shape up the face of the Indian real estate this year and how 2017 will look for the real estate enthusiasts.
Revamped Business Models
Very few residential projects were launched or sold in the the past year.
Due to the pressure brought on by Demonetisation, real estate owners and buyers were facing a lot of problems post November 2016.
With the help of new rules put forth by the Real Estate Regulation and Development Act [RERA], real estate developers are taking the initiative to revamp their business models.
The new rules make complete transparency and accountability towards buyers mandatory.
This not only reinstills consumer confidence but also increase consumer activism.
With the recent introduction of GST [Goods and Services Tax] and Benami Property Act, developers are being coerced to act responsibly.
The constant vigilance of government bodies are forcing them to act like self-governing selves.
There was once a time when owners of a flat were considered to be part of the most affluent sections of the Indian society.
Today, owning a house in India has become a lot easier.
The government has stated that over a crore houses would be built in rural India by 2019.
This would not only bring down the excessive real estate rates but also give more citizens right to a stable home.
Sources of finance like ECBs or External Commercial Borrowings would be put to function due to these changes.
National Housing Banks or NHBs would refinance housing loans to help out those in need.
Apart from this, the permissible space limit for affordable housing was changed to 30 square meters and 60 square meters on carpet area in the main metro cities.
Earlier on, only the saleable area was given importance when it came to this.
Possible Consolidation of Real Estate Industry
Slow sales and financial prudence being a draw back as cast a shadow over the lives of many developers across the country.
After months of trying to win over the bleak situation, the developers have decided to unite.
The real estate is no doubt the most overcrowded financial sector in the country.
Every other man is a ‘promoter’ or a real estate developer.
With the introduction of the new industry consolidation, the sector is going to get leaner.
Joint development ventures are on the cards so is the union of small developers and major real estate developments.
This way struggling developers could also gain from the new trend by strengthening balance sheets and aspiring for more growth.