Real estate has been plagued by several issues including demonetization and lack of demand over the past few years in India. However, after several negative months, things are finally looking up for the sector. The sentiments of the home buying public have bounced back up into more positive territory. The good news in this case is that realty has finally displayed some revival signs and this augurs well for end users, real estate developers and investors alike. As per several reports, the sector is steadily finding its feet, albeit more steadily and gradually as expected.
There is more optimism in Indian real estate due to reforms like GST and RERA. The residential property category could see higher transparency along with several new launches from organized real estate players who comply with regulations. There is major demand in the mid-range and affordable housing categories and this trend will continue dominating the market for a long time according to experts. There will be slower increases in prices of residential property and this will depend on the interest of buyers and overall market conditions. There will be higher stress on the office supply and steadier leasing volumes over the next 6 months or so. Office rentals may also increase on account of constraints linked to supply.
According to several studies, the sentiments of the buyers have improved only marginally when it comes to real estate. 52% of people feel that the Indian economy will see more growth over the next 6 months. Almost 1/3rd of people feel that there will be no significant economic growth over the next 6 months. Several people are still sitting on the fence but with lower interest rates, lower prices and better buyer sentiments courtesy RERA and GST, the realty sector could see a gradual revival in 2018 according to several experts. Most industry stalwarts are highly optimistic about a number of new residential project launches over the next 6 months or so, majorly in the affordable and mid-income housing segments. The sales volumes are expected to go up once the overall impact from GST and RERA settles down to a large extent. The commercial real estate market is also poised to witness growth over the next 6 months.