2017 has been a major milestone for real estate in India. GST and RERA combined with demonetization have affected the sector majorly. RERA has paved the way for greater transparency in the sector and this has attracted domestic and foreign buyers alike. Affordable housing is the biggest trend of 2017 in the Indian real estate market and there has been strong demand for 2 and 3 BHK homes along with a marked preference for ready to move in properties. There is also a marked preference witnessed with regard to opting for reputed real estate developers.
There are a few predictions for 2018 according to market experts. 2018 should see several other joint ventures being taken up between developers. Smaller and financially impacted developers will look to cut deals with larger conglomerates for projects. Developers will be prioritizing the completion of projects before launching newer ones. 2018 will also see improved supply of homes in several markets in India. Developers will be restructuring their business models for ensuring faster delivery without stretching too hard in terms of overall debt.
The Government is aiming at boosting the affordable housing sector in India and has already given infrastructure status to the same. There are several tax incentives available for developers for building affordable housing projects. The Government has already decided on increasing carpet areas to 120 sq. m and 150 sq. m for MIG-I and MIG-II categories. An interest subsidy of 4% will also work as a major catalyst for sellers and buyers of real estate.
Affordable housing will become the major component of every real estate portfolio next year. Developers will be specializing on residential complexes, plotted developments, commercial spaces and townships. There could be category wise service providers coming up across major metros. Bangalore is expected to be the hottest market for real estate in 2018.
Growth in Bangalore’s commercial sector is expected to fuel demand in the real estate sector. The housing market is spurred by the end-user market and higher generation of employment. There will be several infrastructural developments like the phases 2 and 3 of the metro and the phase 2 expansion of the International Airport in Bangalore. These developments are expected to drive higher demand for real estate in Bangalore.
