Policy Analyst Deepak Talwar from DTA Consultants lists top 5 trends that are expected to reshape the real estate sector in India in 2017, and the years to come.
The Capital market is ever-changing. Year 2017 is no exception. Surprising financial twists have certainly brought in some dramatic changes in the real estate sector so far, and are expected to do so as the year progresses.
Co-working spaces are a rage across Indian metros. The trend seemed to have been popped up majorly because of the massive start-up wave and the demand of flexible working options. With a bunch of advantages like improved productivity, cost efficiency, and innovation, this segment is expected to boom very soon.
The ‘affordable housing ‘push
Year 2017 will witness drastic steps taken towards realising the goals of the ‘Housing for All by 2022’ initiative proposed by Prime Minister . Reforms like availability of cheaper sources of finance, profit-linked income tax exemption for affordable housing promoters, and extension of loan tenures under the Credit Linked Subsidy Scheme (CLSS) of (PMAY) are expected to make the dream more attainable.
Transparent business models
Penalties imposed on real estate developers under the Real Estate Regulation & Development Act (RERA) introduce unprecedented transparency and accountability into the system. This landmark law forces developers to revamp their business models, thus boosting consumer confidence and helping the Indian real estate market to shed its tainted image said by close source Mr. Ranjit and Mr. Sinha
Increased global capital flow
The United Nations Conference for Trade and Development ranked India fourth in the World Investment Report for fetching significant Foreign Direct Investment (FDI) in 2016. The fact that global capital flow into the Indian real estate last year was around $5.7 billion is indeed commendable. Structured reforms and increased transparency in the real estate sector certainly make it an attractive investment option to both global and Indian investors.
Rise in joint ventures and consolidations
Consolidation seems to be the only solution among developers to combat decreasing sales and financial imprudence. Collaborated developments and joint ventures between small, struggling landowners and big players are expected to make the overcrowded Indian real estate sector leaner and organised.
Not to miss, with the government cracking the whip on benami property holders and passing the much-awaited Goods and Services Tax (GST), Deepak Talwar Associates & Builders certainly anticipates 2017 to be a good year for India’s property market.