Should you invest in Indian real estate right now?

2017 saw the Indian real estate sector recovering steadily after the initial hurdles of demonetization, RERA and GST. 2018 promises better tidings according to market experts. Experts feel that investors will play a more active role in the Indian real estate market and end users are expected to return to the market once again in larger numbers. Experts feel that there will be a more gradual recovery for the Indian realty sector and total recovery can take anywhere between 3-5 years.

This may be a good time to invest in real estate in India since there is a little chance of recovery in case of resale and ready to move in properties. There could be some long-term and medium-term benefits for the sector according to experts. Those who are seeking short-term investment returns may not really benefit although long-term players could definitely get decent returns. End-users can purchase properties at fair and better valuations and more reasonable price points. There is greater availability of several housing options along with several developer incentives.

Demand will definitely go up for affordable housing units. Experts expect huge growth in terms of home buying transactions in the range between Rs. 25-50 lakhs. There will be better growth driven by major reforms introduced in 2017 and greater transparency in the sector. There will be more transactions fueled by the PMAY benefits. Experts also feel that affordable housing will be spurring major growth for real estate in general.

Housing transactions are expected to pick up majorly across tier-2 cities in India and there will be major emphasis on commercial and industrial development as well. There would be cuts in interest rates by major lenders which will also lead to lower EMIs, higher buyer interest and higher home loan eligibility as well. Tier-2 cities will benefit in 2018 since prices here are comparatively lower than metro cities and there will be several projects coming up in these locations as well.

There could also be sizable investor interest in alternative housing categories like warehousing, data centres, self-storage facilities, housing for students, seniors and even education. However, demand in these alternative sectors is still more than the supply as per experts. Also, big, reputed and organized real estate companies will profit from RERA and the entire regulatory framework. RERA will boost overall sentiments and confidence of homebuyers and this will benefit organized names in the sector.