Residential real estate trends you need to know about
“As government initiatives surrounding real estate become increasingly pro-development, India’s real estate market is not only becoming more diverse in its scope, but is also expected to grow from its value of $120 billion last year to $180 million by 2020,”according to a KPMG report.
India’s middle class is increasing at an alarming rate, resulting in the need for urbanization, consequently, the rapid expansion of its real estate market.
Real estate giant, JLL reported increase in the consumer in demand for the residential real estate sector. The increase in residential properties is co-relational to the pressure of encompassing increasing urban population.
The sector also appears to be moving towards greater assortment, with a mix of residential, and commercial real estate. Sales in the residential real estate space, for example, reached 288,000 last year, and has already spiked to 124,000 in the Q1-Q2 of this year.
With RERA in place, and property prices being stable in most parts of the country, buying home now seems promising. “Also owing to several other reasons, affordability is at a multi-year high. Moreover, renewed developer focus on completion of units has made many good ready-to-move-in options available for buyers,” says Dhruv Agarwala, Group CEO, Housing.com, Proptiger and Makaan.com, in an interview talking about the latest trends in the realty market, and its growth potential
A safer bet – ready-to-move or under-construction properties?
Ready-to-move-in homes are relatively safer because it eliminates the project execution risk, and no discrepancies between expectations, and the actual property. However, with the RERA initiation, developers are now accountable for completing projects within prescribed timelines. Hence, buyers have to ensure that the project is registered with RERA. Under construction properties are however, more attractively priced which increases its preference.
Top residential real estate markets?
Mumbai, Bengaluru are trending on the list of top residential real estate markets in India, says report by money control. Ranking at 13th position Mumbai was preceded by Bengaluru and New Delhi at 16th and 17th positions.
“India continues to remain one of the most attractive investment destinations in the Asia Pacific region. With most of the other cities near the top of the cycle in terms of rent and capital values, India still offers value creation opportunities,” said Bhairav Dalal, Partner – Real Estate Tax, PwC India.