New Real Estate Trends Expected To Emerge In 2019
For those people who are planning to buy home, 2019 will be the same as the last few years. Instead of launching new projects the builders will be focusing on clearing the previous inventory as they will continue to struggle with regulatory changes like RERA & GST. The prizes are expected to remain stagnant.
2019 anticipated to be a tough year for the real estate builders, given the ongoing liquidity problem, owing to the NBFC crisis. Even if the scenario is looking bleak, some new trends are expected in year 2019.
Transactions seem to be happening only in the affordable housing segment in the last few years. This trend will be the same in 2019.
“There will be an uptrend in affordable housing sector from demand & supply side which makes us believe that it would be a key driver for the residential sector in near future,” said Shishir Baijal, a consultant of real estate also, chairman and managing director of Knight Frank India.
Incentives given by the government to the homebuyers & the developers are pushing supply & demand in the real estate segment. Recently our government extended the benefit of CLSS ( Credit Link Subsidy Scheme ) on home loans for middle-income group till March 2020 under Pradhan Mantri Awas Yojana. The home buyers will be able to avail subsidy upto ₹2.67 lakh under this scheme.
“It will be a major push towards the progression of the affordable housing segment. This move will be responsible for a prosperous 2019 as far as the Indian real estate sector is concerned,” said Jaxay Shah, president, The Confederation of Real Estate Developers’ Association of India (national), a lobby of private real estate developers.
Co-living is a old concept, but recently has got a new name. Many of them especially young students & professionals share a house or apartment with others. Various private hostels & lodges work on co-living concept.
The co-living concept is getting organized these days. “Co-living is definitely more than just a bed and breakfast deal. There are private bedrooms with a common area to be shared like drawing room & Kitchen. These places offer convenience and new lifestyle for young people,”
According to a study done by a real estate portal Magicbricks, “Co-living is a fragmented industry many startup players have formed in last few years. Nestaway, Oyo Living, ZiffyHomes, StayAbobe, SimplyGuest, Placio, YourOwnROOM, RentMyStay, CoHo, CoLive, Stanza Living, Quickr, and Zolo are the key players operating in this space.”
Let’s see how the co-living concept is accepted and how it performs in 2019.s
The co-working spaces are expected to strengthen in 2019 as far as the commercial real estate is concerned. Few years ago, it was new concept in India but it not the same today. Lot of traction & acceptance is witnessed as far as co-working spaces are concerned. Previously only small business opted for this concept but know things have change even large companies are opting for co-working spaces concept.
“A change in occupier trends have been seen with increase in collective take up of co-working spaces,” said Ramesh Nair, CEO and country head, JLL India, a real estate consultancy firm.
In 2017 & 2018 the share of co-working spaces in office leasing has increased from 5% to 10 %. With more demand & supply office leasing is expected to increase in the near future. There is a strong demand from start up’s & small enterprises, corporates are also looking at these new-age office spaces added Nair.
According to CRE Matrix, a real estate research and analytic firm, Smart Work Business Centre, a co-working space provider rented 18,000 sq. ft to Tata Communication in 2018. Similarly, Awfis Space Solutions, rented out 21,000 sq. ft space to Hinduja Global Solutions.
Will REITs be launched?
Experts believe that in 2019 there will be a launch of the first Real Estate Investment Trust. REIT was first introduced in India in the year 2008, and the draft guidelines on the same was issued in 2013. As there was less clarity on tax implication REITs didn’t become a reality. Government has removed many hurdles in last few years.
“Governments move to bring modifications in India’s REIT policy will be the key driver for the growing interest of investors in the commercial real estate, making it more market-friendly. Because of this many investors from all around the global have started investing in commercial real estate sector to build their REIT portfolios in India,” said Samantak Das, chief economist and head (research and reis), JLL India.