2018 is set to be an important year for the Indian real estate industry in the aftermath of key reforms such as demonetization, RERA and GST. The real estate sector is also witnessing the rapid growth of affordable housing due to Government incentives like the PMAY and the relaxation of carpet areas for affordable housing properties. The major reforms introduced for the sector are expected to boost buyer sentiments hugely in 2018 and improve overall sales figures. These will usher in more accountability and transparency for the real estate industry and more projects will be brought under the purview of RERA as well. This will lead to more projects being completed in a timely manner and a more balanced equation between market demand and housing supply.
For 2018, market experts feel that buyers who are end-users will keep preferring homes which are ready to move into. In major metro cities, real estate developers are banking on incentives like zero-EMI time periods, rent-free accommodation alternatives and buyback offers to woo homebuyers for projects which are under construction. The growth in the commercial and office space sector will also rub off positively on the residential category according to experts. However, people will look for reputed realty players who are building comparatively value for money and affordable homes.
Real estate developers throughout the country will continue to emphasize on lowering of unsold inventory before launching new ventures. Track record of developers will be scrutinized even more carefully by homebuyers along with delivery dates and construction quality. RERA should facilitate more investments into the sector and the Government incentives for affordable homes will lure more private realty players into this market category as well. Prices of property will remain relatively stable across major metro cities in the country. In fact, corrections in prices in some areas will be beneficial for buyers.
Capital values of real estate will remain more buyer friendly due to the large number of housing units which are still unsold throughout the country. This makes it a good time to invest in real estate according to market experts. This is still a buyer’s market and 2018 will largely see this trend continuing as per reports. There will be higher absorption in terms of inventory over the next few months as well. Projects that are nearing completion will find buyers faster and this will speed up the sales of units that were lying with developers for a long time.