With the implementation of policies like the RERA Act, transparency in the Indian real estate has increased significantly. Private investments have substantially increased. The real estate sector alone attracted over $6.06 billion worth investments in 2019 and is further expected to do so in the following years.
This steady growth and prospect have also given rise to some prominent real estate trends. To understand how such trends influence the realty sector, the initiative of affordable housing and home buyers in general, one needs to become familiar with popular real estate trends in 2020.
Here are some of the most noticed real estate trends in 2020 –
Growth in the residential and commercial sector
A sharp rise in the amount of commercial start-ups and business ventures have been noticed in the past few years. In turn, it has given a significant boost to the demand of both commercial and residential properties in the cities with thriving commercial industries. In case you are willing to tap into this growing trend of real estate, learn how to invest in property for rental yield to profit from it.
Affordable housing segment
The Indian government has launched several new policies and relaxations to promote the sale of affordable housing in India. For example, under the Pradhan Mantri Awas Yojana Urban, 1.12 crore houses were sanctioned for metropolitan regions.
Pradhan Mantri Awas Yojana is only affiliated with a few financial institutions. Those who are looking to profit from the scheme can avail a home loan from such leading institutions.
The real estate sector is also incorporating the latest technological trends to cater to the home buyer’s requirements better. Technology like machine learning, artificial intelligence, and data gathering is emerging as an integral part of this sector. Also, the popularity of third-party real estate online portals serves as a platform for potential homebuyers and sellers. Additionally, smart home projects are also trending in urban residential and commercial areas.
Foreign direct investment
Another initiative that the Government of India has taken to boost the real estate sector is attracting and allowing more FDI into it. Favourable investment policies, which permit up to 100% foreign direct investment into the township and other developmental projects, are playing a vital role in their success. Resultantly, it can be estimated that in a few years, the demand for the suburban residential market will increase significantly as well. Hence, those who have been planning to put money in developmental projects should avail of a guide to picking the perfect property to invest in.
A rise in co-living and co-working spaces
The trend of co-living residential areas and co-working spaces are on the rise, especially in the metropolitan and commercial hubs of India. It is mainly because of the growing inclination of the youth and budding entrepreneurs towards more dynamic co-owned spaces over usual rented residential and commercial spaces.
As a result, the current co-living market in over 30 top cities in India is valued at $6.7 billion. It is also assumed that the market will expand significantly by 2025 and would be valued at $13.92 billion. Thus, indicating that this trend is going to dominate the real estate industry significantly in the years to come. In turn, it makes an excellent prospect for those who intend to purchase a living sector and outlet it for rent.
Therefore, it can be said that the government’s affordable housing schemes, use of smart technology and rise in the demand of co-living spaces are among the latest real estate trends. They are not only reshaping this sector but also extending profitable prospects for both homebuyers and investors.