Upcoming Indian real estate trends to sway the market in 2019
Highlights of Indian Real Estate 2019
- RERA and GST have put a hefty impact on the real estate sector
- Small scale projects are culminating with large builders through consolidation
- Under-construction properties expect less sales in 2019
Rera and GST acts
The real estate sector accounts for approximately 10% of India’s GDP. With the implementation of economic reforms like RERA, and GST, the sector is on a changeover, and consolidation acing as the new trend in the industry.As the small scaled real estate projects are being engulfed by larger developers, co-optation or joint development are their ultimate resort option, consolidating themselves with the larger conglomerates in order to survive, and decrease the debt burden.
Read : Rera Act for real estate
The government’s subtle promotion towards affordable housing has affected the major property player’s growth in that direction. The proliferation is likely continue in the next year as well.Talking about the notable names in the real estate sector, the shares of Oberoi, Sobha, Prestige real Estate Projects, and Mantri developers , Sunteck Realty have ascended, concluding them as the top gainers on the index. Some of the brands such as India bulls Real Estate, Godrej Properties, Brigade Enterprises and DLF have trodden as the worst performers on the index.
The decreasing preference for under-construction property amongst the buyers have been due to its uncertainty factor, and maintenance charges. However, the residential properties have seen an upsurge “With developers and brokers accepting the new market realities and beginning to fall in line, the residential sector began to regain visibility and viability. Transparency and accountability—never the defining characteristics of Indian real estate—became the ‘new normal’ this year,” said Anuj Puri, chairman, ANAROCK Property Consultants.
Act 2016 Regulation
Under the recently executed Real Estate (Regulation & Development) Act, 2016, Under-construction realty projects without OC need to be registered, which will also levy 12% Goods & Services Tax, but in spite nearly 8% drop in unsold housing stock, the levels still point to it being a buyers’ market.
Focus points of 2019 Indian real estate
Developers are now focusing on completing the projects and making them ready for possession, rather than just refinancing projects. The sector will also lay more emphasis on luxury, affordable and commercial properties. Therefore, expecting a vertical growth as well.