In this era of rapid urbanization the modern infrastructure is touching new heights and dimensions. Particularly in India, the real estate sector is all set to bloom. The year 2016 has been radical in approach by far for the real estate sector from a policy perspective, with Benami Property transaction prohibition act, RERA and GST with an added brink of demonetization.

All these policies by far has made the niche sector much more transparent and laid the legal mat smoother for the home buyers. The confluence of factors, including a projected sharp increase in the country’s per capita income, further urbanization and a firmer federal hand on regulations, could push annual property market sales to $462 billion by 2025 as per estimates by the Morgan Stanley. India’s property market sales are expired to grow at a 14 percent compound rate 2016 to 2020 and 18 percent to 2020 to 2025. Also real estate sector in India is expected to attract investment of worth $8 Billion in 2018, which will further rise to $10 Billion by 2020. Expecting to make India the 3rd largest real estate market in world contribution to over 15 percent of the nation’s GDP.

In terms of Supply, 2017 appears to be a strong year with over 7.7 million square feet of net supply to come on stream. Also, housing sales are expected to pick up in H2 2017 as house buyer requires are expected to rise due to a favorable landing and policy environment. The recent prediction of IMF of over seven percent growth rate along with lower interest rate regime augurs well for the India real estate sector.

RITs will enable development of better quality malls and discourage strata-sale of properties

The Indian real estate sector is on the crop of transformation with structural reform enquiry long term substance. As a result, the anticipated revival of the economy is expected to reduce the gap between demand and supply.

There has been a dip in the residential real estate activity in the recent years due to weak economic scenario, perceived high price level and lack of consumer confidence in the developers with respect to project completion. However, declining interest rate environment, pick-up in economic activity and low inflation suggests that the residential real estate market is on the road to improvement. Projects with smaller unit sizes will witness more traction that projects with larger unit sizes as expected.

Also, the government schemes and initiatives such as various urban development policies and programs (smart city, AMURT) are expected to contribute to demand for real estate infrastructure. The Year 2016 was a landmark year for the commercial real estate sector, with record absorption level of over 43 million square feet reflecting a nine percent YOY growth.

Currently, retail accounts for a small portion of the Indian real estate market. 2016 saw supply of 5.3 million square feet of retail space across major markets. NCR accounts for about 49 percent of the total upcoming mall supply. Also, RITs will enable development of better quality malls and discourage strata-sale of properties. This is what Abode 1st visions upon.
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