From the enactment of RERA to the implementation of the Goods and Services Tax (GST), a lot of factors have impacted the real estate sector in the past year. The numbers and analytics weave some striking trends that indicate the direction that the real estate industry is taking
Here are some of the major trends in the real estate sector this year.
1- Smaller homes; same configuration
With an aim to get the pricing of properties under the budget range of home buyers, real estate developers are shrinking home units without making a compromise on the overall configuration of homes.
In just a few years, industry studies have shown that apartment sizes in cities like Bangalore and Mumbai have shrunk by 12 to 30 percent.
Though, the decrease in the sizes of apartments hasn’t affected their configuration at all. Even though a 2BHK’s size might be smaller than the ones in the past, it’s still a 2BHK. By following this strategy, real estate developers are able to keep the property prices affordable and still maintain the buyers’ interest.
2- Livability and quality of life are the deciding factors
No matter what price range the project offers, home buyers today do not want to compromise on factors like quality of life and accessibility. People no longer want to buy a house in an area where there aren’t any sufficient parking spaces or easy options to commute to their offices.
Instead, home buyers look for projects with well-lit spaces, sufficient parking slots, well-maintained parks, and convenience stores. While these are just the basic necessities for rather affordable houses, as the price range goes up, home buyers look for projects that offer all the aforementioned facilities plus gyms, swimming pool, and clubhouses.
3- Affordable housing at the center stage
In the last quarter, home sales in nine of the metro cities in India declined by 18 percent as compared to the same quarter of last year. Though there was a big change that was seen in Gurgaon and Mumbai.
The sale of affordable housing units below the range of 25 lakhs increased in the last quarter. In fact, in the second quarter of 2018, the affordable housing units contributed to over 61 percent of the total real estate sales in Gurgaon.
The trend clearly proves that affordable housing has a huge demand in cities and it is here to stay.
4- Transparency in the details
With the implementation of the Real Estate Regulatory Act (RERA), the real estate sector has seen a big push towards transparency. The home buyers can now check all the information about RERA registered development projects online and even raise complaints in case the developers aren’t complying with the RERA standards. This has, in turn, boosted the confidence of buyers, as they can now be sure that developers are committed to complete their projects on time. Any fault of the developers gives the buyers an easy way to secure their investment and get refunds.
5- More people will buy homes
In the last two years, the real estate sector went through big changes with demonetization and introduction of RERA. The combination of low demand, excess supply, and high prices lead to massive inventories.
That means the rest of 2018 is buyer’s market, though you should remember that the situation would not stay the same for long.
Currently, most developers are focused on finishing their current projects. It is expected that the number of housing projects will decrease by at least 40 percent, which means the housing supply will soon find a balance between demand and pricing. For homeowners, this means that they will be able to get a great deal, thanks to the excess of supply.
Are you ready to take advantage of this opportunity and invest in property this year?