Trends that Shape The Real Estate Market in 2020
The real estate industry in India is changing with time. New trends are taking place. There is an increase in urbanization in most of the cities. The main reason people are moving from rural areas to urban areas is better employment opportunities and better lifestyles. Thus, the shift of more people in cities will require the housing facility. But there is a shortage of houses in our country due to which there is growth in the real estate region. Also, population growth increases the requirements of land which in turn increases the real estate growth.
The year 2019 was not that good for the real estate sector, there was a struggle with the funding. Many changes have taken place due to events like GST and demonetization. Many trends came out in the past few years which will help to guide the outlook of the real estate sector.
Here are the main trends that shape the real estate sector in India.
Impact of Technology: Technology has entered each sphere of our life. It shows it influence on the real estate industry also. Real estate company in Hyderabad and other cities understand this fact that the families are looking for residents, requests for smart homes and Eco-friendly environments. On the other hand, those who are commercial buyers want to save money through technology. The major difference is iBuyers. These are those companies which make direct purchase i.e. these companies buy directly. After buying properties directly they sell them.
However, the impact of Ebuyer ion the real estate market is yet to be seen. The process of construction is also adopting technology for most of the work related to data gathering. Technology does not play a vital role in improving the way of construction but also it is helping in completing the projects on time. Smart homes are in demand. Thus, for that purpose technology is playing its role at a great level.
Request for Interconnectedness: Now as technology has developed ate a big pace, people like to travel more. In the past people used to find a job position near their living place. But now the time has changed, and people don’t mind choosing a position far from the city or in another country. This means that the neighborhood that offers a good connection in respect of transportation will increase in popularity. This includes public transport as well as the special lanes built so that the people living there can go to their work and store through their bike. Therefore the ‘green’ movement is spreading globally. People expect new and upcoming neighborhoods to be green.
Growth of Residential and Commercial Sector: In 2020, there will be growth in both the residential as well as in the commercial real estate sector. With the rapid increase in urbanization, there is a big growth in the commercial sector of real estate and this, in turn, leads to greater residential demand.
There are many concepts out there that help in growth such as affordable housing for all. So, we can say that both the buyers and the developers like the concept of green technology. This will show growth continuously as the developers now are mainly concentrating on the designs which are environment friendly.
More traction for Sub-Urban Cities: There is an increase in the demand for homes in markets like Pune, Hyderabad. Many companies in these cities such as BBG India in Hyderabad are providing affordable projects. This demand for homes or we can say the trend in such cities will be continued in FY21 also. Due to the affordable housing, the demand for secondary markets has arisen such as in Goa.
Co-living and Co-working Will Rise: In past years there is a change in the behavior of the customers especially in the behavior of the millennials. They mostly like co-living spaces. Also due to the increase in the gig economy, there is a great demand for the co-working spaces in most of the cities in India like Bangalore, Hyderabad, and Pune. Thus, this is probably good news for the real estate development company in Hyderabad. This trend will show more growth in 2020.
Redefined Luxury Housing: The concept of luxury housing is greatly affected by the demands of the buyers of a new age. Luxury housing accommodates universal living experience which the developers must incorporate. There is a hope of growth in the business ecosystem in 2020.
Infrastructural Development: There is a connection between the growth of infrastructure and the demand for real estate. Both are interlinked. Many infrastructural projects such as metros, airports railway lines, etc attract commercial activities in those areas and thus these results in a sudden increase in the prices of land. Due to the massive investment of government in infrastructure, there will be a great expectation of boost in the real estate market.
Warehousing Segment: As a rise in e-commerce in India, the demand for warehousing is also increasing. The unorganized players are dominating warehousing segments in India. While organized warehousing is gaining traction.
All these trends are shaping the future of the real estate industry in India. In the past few years, the progress of the industry has slowed down. If the Indian government provides some stimulus then there could be a boost in the housing demand. Also, it will help in recovering the industry, but this recovery is also going to be at a slow rate in 2020. Thus, the real estate companies should learn about the trends so that they can prepare themselves for what is coming next.