The real estate sector has been a key driver of India’s growth. Its contribution to India’s GDP, at 7%, is one of the highest across industries. By 2025, the Indian real estate sector’s contribution to the GDP is expected to cross 13%.
Despite the massive numbers, the real estate sector has been going through tough times. Be it COVID-19-led economic disruption or changes in regulatory policies, the real estate sector has been battling with too many issues.
The result, as of December 2019, there were nearly 4.5 lakh unsold housing units in the country and further exacerbated by the COVID-19 pandemic.
However, if the history of real estate is any indication, every time there has been a slump in demand, it has given birth to new trends that became the new normal within a few years and led to a generous revival.
Read this article to know the emerging trends in real estate that can guide us through 2021 and the years thereafter.
The Top-5 Emerging Trends in Real Estate
Real Estate Investors Will Make Way for Property Buyers
Since 2012, a new trend has been developing in the real estate industry. While earlier, investors had increased risk appetite in real estate, they are now moving to other sectors that generate higher returns quickly. Under the changed circumstances, it is safe to assume that the future belongs to the end-users of property.
As property prices have been steadily coming down, and the industry appearing far less lucrative for real estate investors, property buyers will flock in to take advantage of low property prices and buy premium properties at a faster pace than ever before.
Fully Constructed Properties Will Get More Buyers
Buyers are unwilling to take risks, especially after the pandemic. With IL&FS debt crisis still fresh in property buyers’ minds, and the banking and housing finance industry struggling with rising NPAs and liquidity constraints, consumer preference is steadily moving towards fully constructed properties.
Gone are the days when property buyers did not mind waiting for a decade as their properties got constructed. At present, the majority of property buyers are millennials, who have loads of cash at their disposal, and do not mind paying more, as long as they get their property quickly.
Selective Zones Will Draw Most Buyers
Hyderabad and Bengaluru will emerge as clear winners, as property buyers look for areas with lower than average vacancy rates and stable rental growth. In the decade ending with 2020, Hyderabad alone got $197 million in retail assets and $2 billion in corporate assets.
While Mumbai and NCR have traditionally dominated office spaces, the residential segment has been dominated by Mumbai, Pune, and Chandigarh.
However, COVID-19 has changed the landscape. As incomes take a hit, property buyers will search for zones that can offer them lots of space, convenience, and connectivity.
Technology Will Dominate the Landscape
Over the years, property buying has become more technologically driven. At present, buyers can scan a property in Trichy while sitting at their home in Jammu. Everything from property scanning to buying can take place online.
Soon, property buyers may view property in real-time with the help of Virtual Reality and Augmented Reality. Hence, developers that offer such facilities can draw more customers.
Affordable Housing Will Create More Buzz
With the government committed to making ‘housing for all’ a reality, affordable housing will be more lucrative than ever before. However, the definition of affordability has changed. Now, affordable housing often includes everything that a luxury property has.
In an age ruled by value over luxury, developers will gradually adapt themselves and their properties to the changing reality and make properties more attractive and cost-effective.
If the emerging trends in real estate are any indication, the future belongs to experienced developers with a robust project book. With 23 years of legacy and 45 fully-constructed projects, Aparna Constructions values itself as one among its 16000+ families.
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