The real estate sector in India is evolving. After experiencing several structural reforms and advents in the past few years, the industry is likely to experience gains in 2020. According to a report published by Colliers, a global property consultant, the investment in the real estate sector will rise by 5% to $6.5 billion in 2020. The report by Colliers also indicates that in 2019 the industry attracted $6.2 billion investment, around 8.7% more than in 2018.
The series of reforms did stagger the growth rate of the real estate sector. However, gradually it is ushering an era of transparency between the buyer and developer. The industry is now also expected to contribute more significantly to the economy. The real estate sector contributes around 6% to 8% to the country’s GDP and is the second-largest employment generator. The emerging trends in real estate in 2020 are likely to boost this growth, creating a highly competitive environment for the developers. A CREDAI & IBEF report indicates, the real estate sector will reach US$ 1 trillion by 2030 from US$ 120 billion in 2017, contributing 13% to the GDP by 2025. The contribution of the housing sector to the GDP will also double to around 11% by 2020.
Along with this growth and further expansion, the real estate sector can change in the following ways in 2020.
Fourth Industrial Revolution, A Game Changer: Various technological innovations are beginning to play a transformative role in real estate and its ancillary industries. Technologies marking the onset of the fourth industrial revolution, including Artificial Intelligence, The Internet of Things, Machine Learning, Robotics and Cognitive Automation can transform the real estate sector in 2020. With the help of these technologies, developers will make eco-efficient buildings. It will also facilitate effective planning in the construction of real estate projects like designing leaner structures of better quality and optimized cost value.
More NRI Investment: The era of transparency in real estate and new policies, facilitating ease of doing business in India is attracting more NRI investments. The year 2020 is likely to invite more foreign investment in the real estate sector. This growth outlook is appearing positive for residential and commercial real estate.
Adoption of Sustainable Housing: The demand for green and sustainable houses will increase in 2020. The future of the real estate industry will be sustainable housing. Developers will need to work towards making sustainable infrastructure with green housing concepts, good air quality, spacious homes, optimum management of natural resources and waste management. To save the environment, developers must embrace and integrate such sustainable solutions in residential and commercial buildings.
REIT to Enhance Transparency: RERA, GST, Benami Transaction Amendment Act, Pradhan Mantri Awas Yojana, the Real Estate Investment Trust (REIT) will further enhance transparency, financial discipline and increase efficiency. This will also encourage real estate investors to take the plunge both in India and globally. So, you can expect more NRI’s investing in India after the implementation of REIT.
Expansion in Home Buyer Spectrum: With such transparency coming into effect, the spectrum of home buyers will expand. There will be more people looking forward to investing in real estate for self-use. The focus on affordable housing will further help this section of investors. Affordable housing will be a crucial driver in the real estate market providing opportunities for developers and investors.
Luxury Housing Redefined: The traditional concept of luxury housing will experience a paradigm shift. Developers will have to offer a more holistic and elevated living experience to home dwellers. Luxury will get defined with smart home features, open and green space and spacious flat design.
During the year 2020, the real estate sector will experience some ups and downs. However, the government initiatives of introducing policies supporting buyers and developers, and better housing options will make 2020 a good and promising year for the industry.
Now, let’s analyze the real estate sector from the home buyer’s perspective as most industry experts predict normalcy in 2020. Homeownership has always been and will continue to remain a highly cherished dream of most Indian families. Investment in real estate is pious and precious. However, the series of reforms in 2016 and 2017, and changing property market scenario was keeping investors at bay. The market started transforming in 2019, and the year 2020 is getting looked up as a stable one. Positive buyer sentiment is under forecast and here is an insight into the significant predictions.
Property Rates Can Move Upwards: The property prices are likely to go up in 2020 as the real estate sector will experience normalcy. Price correction may happen for some overvalued projects; however, by and large, the rates will increase marginally. The upward trend of prices is getting predicted for properties in cities like Mumbai, Bangalore and Hyderabad.
Better Home Loan Deals from Banks: In 2019, the RBI reduced the lending rate by 135 basis points. However, the banks did not transmit the reduction in prices. In 2020, the prediction indicates for the revival of the economy through demand support and banks will bridge the gap. So, homebuyers can expect cheaper home loan deals.
Fewer Operational Banks: Making the market more lucrative for homebuyers will be a lesser number of banks. In 2020, there will be the survival of the fittest for most banks. Thereby, homebuyers can expect affordable home finance options this year.
More Housing Units Nearing Completion: After the launch of RERA, the focus was on project completion while new projects took a backseat. The genuine developers finding financial constraints got support from the government through alternative asset funds. By this means, more housing units will get delivered in 2020. This way, buyers interested in ready to occupy flats in Bangalore will also get ample options from which they can choose.
With better home loan deals and more housing projects to choose from, the buyer sentiments are likely to get boosted in 2020. The ready-to-move-in stock of housing projects will increase too. So, home buyers interested in such options will be getting spoiled with choices. Overall, one can expect a more stable and promising real estate sector. It can be ideal to invest in end-user property in 2020. You can also plan and earn rental income from a second property.
5 Key Expectations from Property Market in Next 10 Years
- The home buying market is likely to become need-based. Thereby, you can expect a surge in demand for compact and luxury homes.
- There will be more use of technology in home construction and project deliveries will speed-up.
- The work from home trends will increase so the demand for homes near workplaces will decline.
- There will be a surge in demand for rental homes.
- Small-sized investments will also start taking place.
Valmark @ 2020
If you also feel that 2020 is the right year to invest in property in Bangalore and you are looking for such promising projects, then know about Valmark homes. With decades of specialization in homemaking, we know the art and science of designing the perfect home for you. If you are looking for a luxury project with sustainable features, then Valmark Apas can be ideal for you and your family. Nestled off Bannerghatta road in south Bangalore, the sustainable township comes with some fantabulous features. You get to customize the floor plan and a plethora of amenities like sky lounge, gaming zone, cricket practise pitch, mini theatre and much more. There are also some smart home features like video door phone system, bathroom occupancy sensor, mood-setting, provision of certain automation and more. Know more about this RERA registered project that already has the OC and walk into your smart, sustainable and ultra-luxurious abode in 2020.
Likewise, if you are looking for a quality property with best in class amenities, then Valmark Orchard Square can make a fine choice. Awarded the Best Mid Segment Project 2019 by Commonfloor.com, the 2 & 3 BHK units in JP Nagar, 8th Phase south Bangalore can make your dreams into a reality. Nearing completion, this project of Valmark is spread over 3.25 acres and offers plenty of amenities and rustic neighborhood charm. You can feel the old Bangalore vibes in this part of the city and the contemporary charm when you make Orchard Square your new address. Equipped with surveillance and security, you get a swimming pool, sauna and steam, jogging track, gardens, play area and many more facilities.
For contemporary, classy and luxury homes in Namma Bengaluru, trust the decades-old developer – Valmark. Designing homes with the latest technology, offering tie-ups with prominent banks for home loans and adhering to delivery schedules, Valmark delivers as promised. The above-mentioned projects Valmark Apas, the ultra-luxury project has obtained OC and Valmark Orchard Square, luxury homes are nearing completion. You can know more about these projects, plan a site visit and book your dream dwelling.
