Real Estate in 2020: Trends Driving the Realty Sector This Year
The Indian real estate market witnessed a slump last year. 2019 was a relatively challenging year for real estate developers in the country, with the sector experiencing an overall slowdown. With 2020 well on its way, it is imperative to know how the year is expected to span out to make the most out of the current realty market. Developers have to adapt to numerous changes that the market is experiencing in terms of preferences, technology and demographics. This will help boost buyer sentiments and hopefully allow the market to rise from the slump.
2020 Realty Trends
Indian Real Estate Market Outlook in 2020
- The rising demand for affordable housings
The stand-out trend for this year is the rapid rise of emerging micro-markets and ‘value for money’ homes. Due to infrastructure and economic developments, there has been a rise in emerging micro-markets that have been witnessing a huge demand for residential homes. So shifting the focus away from premium and luxury projects and concentrating, instead, on the affordable segment would be the right move. Commercial real estate segment is also on the rise with interests from foreign investments which will help the economy in 2020.
- Use of technology & innovative offerings
The real-estate sector has seen some major innovations in the last few years with new-age customers relying heavily on technology and social media. Adopting technology and leveraging it will be the key to engage with customers, enhance their experience at every touchpoint and build a positive perception. From voice-enabled homes, homes centred around children or seniors and more, buyers now have a wide array of options to choose which homes perfectly match their lifestyles.
- Emerging popularity of integrated townships
Issues like rising property prices, over-crowding and spread of income opportunities have championed emerging Tier-II emerging cities. Property prices here are not only reasonable but due to the availability of large land parcels, developers have started construction of high-quality residential homes and townships at competitive prices. Townships offer everything you need for daily life in one place and hence are more in demand. So township projects are likely to grow in popularity in 2020.
Although the residential market is on an upward movement, major government reforms and policies need to be optimized to elevate the market conditions and boost consumer sentiment. This will help in generating demand and improve trust among consumers. Easing the burden of various tax schemes like the Goods and Services Tax (GST) and allowing faster project clearances will boost the industry. The withdrawal of the input tax credit (ITC) is also affecting the affordable housing segment as the construction costs involved are high. Reforms in taxation are necessary to boost the sector. But experts are optimistic about the future of the real estate industry in the country.
Srivari Group, one of the most prominent developers in Coimbatore, has built numerous landmark projects with the vision of transforming the Indian real estate industry and today over the years, its multitude of projects stand testimony to the shining excellence and brilliance in execution. Well-known as reputed real estate developers in Coimbatore, Srivari real estate enjoys a tremendous reputation and goodwill because of the transparency in operations and quality of construction.