In 2019, the real estate sector went on with a slow-pace due to difficult market conditions. There were challenges that kept an upfront resistance in the sector’s growth which made the developers rethink their strategies and work on their weaknesses. Knowing where they hold good now, the industry experts are ordaining several regulations that will help the conditions of the real estate market to see a positive change in 2020 in terms of pushing the sales of affordable housing.
What are the expected changes in 2020?
This year it’ll be the end-user that will drive almost all the real estate demand with the supply of products solely aimed towards them.
The demand for compact housing is expected to witness a tremendous rise. The developers are forced to shift their attention from luxurious projects to providing more affordable homes. As the trend is now moving more towards the nuclear family rather than a joint one, the youth is becoming vigilant in adopting a ‘space for a budget’ mentality which will help raise the demand for compact housing across the country. Selecting the right home is important, hence the properties with the right price tag will attract more demand making them out of stock sooner than expected.
As technology is improving rapidly, the next-gen buyers depend more on social media & online research before buying a house. It is therefore important that the developers adapt and tap into every possible aspect of the next-gen home buying process. The adoption of technology in real estate will improve the way this industry works thereby bringing transparency and improving the experience of the end-user.
What are the upcoming challenges for the industry?
Even though the coast looks clear, there are certain obstacles to overcome. The real estate sector will look up to the initiatives and policies enacted by the government to increase the demand. The industry is under fatigue due to its share of highs and lows in the market conditions also given that real estate is a major contributor to India’s GDP. It is expected that the funds should be raised to support a lower cost for the buyer and better regulations to avoid the delays.
The GST (Goods and Service Tax) and other taxations are imposing a kind of burden on the real estate sector. Lowering a few tax burdens will surely help boost the growth of the industry by getting faster sanctions altogether. The stamp duty charges and rate of interest in India are invariably high when compared to other countries. If lowered it could help the home buyers significantly.