Investment Outlook , Published Feb 17, 2019
Managing Director at Hiranandani Group Of Companies and NAREDCO President.
We are expecting great advancements in terms of investment opportunities and infrastructural development with a blend of technological aspects in metro cities and their peripheries, resulting in the creation of new satellite cities.
2020 will be the year of potential checkpoints in the race to become the trillion dollar economy. The players who are organised in terms of funding, land banks, feasibility and are able to abide by the norms will rule the roost.
The Indian real estate sector has gone through some gigantic transformations in the past ten years. The sector is projected to contribute 13% percent of GDP growth by 2025, and is striving towards becoming a trillion dollar economy by 2030.
Rapid urbanisation is taking place and laying an encouraging emphasis on escalating income levels. Due to this, the demand and desire of buying a home is incessantly growing. In sequence to be at par with the varying requirements of the growing demand for residential and infrastructural developments, we are looking forward to a massive wave of organisational approach across all asset classes and emergence of new ones in the real estate sector. Exploring it further, appended are some of the most promising residential real-estate trends to look out for in 2020.
The Emergence of new satellite cities & townships
Envisaging the potential of 2020, we are expecting great advancements in terms of investment opportunities, infrastructural development with a blend of technological aspects in metro cities and their peripheries, resulting in the creation of new satellite cities. These cities are developed with a futuristic approach and have the zeal of modernised urbanisation along with serving the motive of affordable living to the migratory population seeking a decent lifestyle. Panvel, Dombivali and Palghar (near Mumbai) are some marvels of satellite cities and townships that have already taken shape.
Consolidation is the key to the future of Indian Real Estate
Consolidation is the biggest theme right now being played across the sector. The developer was earlier evaluated basis the project level, whereas now the credit is evaluated at the capacity of the developer. The players who are organised in terms of funding, land banks, feasibility and are able to abide by the norms will take on the other players who are not able to meet any of the requirements, thus enabling the land-owners and small-time developers to grow in the industry, with the overall motive to harvest development.
Co-living spaces to take over unorganised paying-guest accommodations
Co-living spaces as a sector is at its nascent stage, but is proven to grow at a tremendous pace over the last year.
As per reports by experts, this sector has seen a growth of over 100% since 2017. This will take some time to settle in and make space of its own. However, given the massive number of students and job aspirants migrating to cities like Mumbai, Delhi and Bengaluru, the growth for this sector is gradual but steady and by 2020, we can visualise this as we look at co-working spaces presently.
Affordable Housing – shaping a million dreams into reality
Numerous measures have been taken by the government to draw the attention of the developers’ fraternity towards this sector. With the aim of reducing construction cost through the use of technology, wider funding avenues and entry of credible developers, the goal of the honourable Prime Minister is in full swing and the funding, land banks and development plans & processes are in place that will be served, if not within the timeline, at least a year later.
Apart from this, we look forward to welcoming REITs, enhanced connectivity and modes of transport including the metro line proposed from CSMT to SEEPZ, the first of its kind Mumbai- Pune Hyperloop project and inland water-ways that will add mileage to the growth of satellite townships and areas, thus encouraging new habitations. Overall, 2020 is the year we are projecting as one of the potential checkpoints in the race to become the trillion dollar economy.
Investment Outlook 2019