The year 2019 has played a crucial sector in shaping the real estate sector with more millennials buying property, prestigious developers establishing their presence in second-tier cities, and a rise in affordable housing, commercial and rental properties. As we enter the New Year 2020, it’s time to take stock of what’s in the store for the real estate industry as we expect to see positive changes in India's real estate sector. So, let’s have a look at the top trends that build Indian real estate market in 2020.
In 2019 few years, the office space gained traction in most cities with IT/ITeS players contributing to the majority of the leases. Similarly, 2020 has great potential for both residential and commercial real estate business. Also, the warehousing sector will gain traction. Rapid urbanization and white-collar migration will ensure strong growth for the commercial sector, which in turn will translate into higher residential demand in the coming years. With concepts like ‘Housing for All’, affordable housing will continue to be the key growth driver in the year 2020.
According to a 2019 report from FICCI and JLL, the Indian co-living spaces market is expected to grow at a CAGR of 17% and touch around Rs 1 trillion by 2023. Co-living spaces are based on the abstraction of communal sharing which is popular India’s metro city and 2020 will see it percolating down to tier-II cities like Ahmedabad, Jaipur, and Indore.
The concept of luxury housing is greatly influenced by the demands of the buyers of a new age. Luxury housing shelters universal living experience which the developers must incorporate. There is an expectation of growth in the business ecosystem in 2020.
Markets such as Pune, Chennai, Hyderabad, and Bangalore have seen a substantial upsurge in demand for homes. The affordable housing segment will create demand in secondary markets like Goa, Coimbatore and places alike.
Smart tech and innovation in the sector is no longer a distant future. In terms of construction, the key players will adapt to the latest technology – data gathering, artificial intelligence and machine learning which will play a key role in redefining the realty sector in India.
The demand for student housing in India has shot up due to the rapid migration of India’s young population from small towns and villages seeking job opportunities and higher education in cities. Thus, the year 2020 will see student housing come into prominence as the Indian government works on its “Study in India” program with its goal of achieving 30% of students in the 18-23 age range mark for higher education by the end of the year.
These days, both developers and homebuyers have been supporting green technology. People presume new and upcoming neighborhoods to be green. This will continue to grow with planners focusing on technological advancements in procuring raw materials that are eco-friendly and sustainable designs that are environment-sensitive.
Real estate as an investment option
Experts in the domain consider real estate to be the hottest investment option in the year 2020. As land resources are declining over time, and the demand is growing at a high pace, property prices are expected to rise in the near future. An investor will benefit from investing in real estate in 2020 as it can be sold at a profit when the prices go further up…
All these trends will shape the future of the real estate industry in 2020 and the coming years. This would trigger fresh activity and owing to this, sales numbers might also improve. However, those willing to make a move in this market would certainly reap the benefits in 2020.