The end of the year 2020 marked some interesting and positive changes in the Indian real estate. The developers have rejoiced in the sudden boom the real estate industry witnessed. This was backed by some important events like creation of real estate trust, banks lowering interest rates and RBI offering incentives for infrastructure financing. There was large scale demand for property, like the property in Bangalore. Needless to say, 2021 has witnessed some real estate trends.
South India in demand:
Regions like Old Mahabalipuram Roadand grand southern trunk road in Chennai and Whitefield and Sadashiv Nagar in Bangalore are in large demands and thus there are projects with more than a 1000 units coming up. Such type of development is also seen and popular in Northern India, but South India however has a larger demand.
Heritage cities on the path of development:
When it comes to realty development the heritage cities aren’t far behind. Government has taken the initiative to develop these places and make them a realty hot spot. The first phase of this project includes Ajmer, Mathura, Varanasi, Amritsar, etc. and the second phase includes Puri, Rishikesh, Allahabad, Lucknow, etc.
Residential market on a roll:
Most of the buyers prefer to buy residential plots because of their returns. They are turning their focus to smart cities, which are yet to adapt to this market. These smart cities are smaller and are thus to pick up pace in the residential market, but ones they do, they will be a blessing to the residential real estate market.
Industrial market to grow:
Indian cities that fall under Industrial corridor are expected to face major demand. As each corridor passes through industrial cluster and witnesses infra growth, these cities will be a major attraction for the investors.
The government has promised houses for everyone by 2022, and thus affordable housing has come to picture. RBI has lowered interest rates and thus the home loans up to Rs 50, 00,000 in metropolitan cities and Rs 40, 00,000 in non- metropolitan cities will come under affordable housing.
Faridabad a hotspot:
Faridabad and greater Faridabad are emerging as the new hotspot due to its connectivity with Noida, greater Noida, Ghaziabad and Delhi. Greater Faridabad is the newly formed self-sustained sub city.
The smart cities have been developed a lot; a survey shows that the investors are keener to invest in these cities.
Commercial realty next big thing:
The ‘tax pass through’ status has done wonders for the Real estate investment trust and thus commercial real estate is expected to be the next big thing.
Realty attracting investors:
Investors have been reeled back in to the real estate market, thanks to the FDI. It allows the investors to exit ones the project is complete.
Bangalore in demand:
Bangalore has been in demand for the ready to move in houses. The large scale demand and the pressure of EMI have caused a lot of delay.
Too many resale properties:
There are a lot of properties that have come up for resale. There are about 60% such properties in Bangalore alone.
Pune losing its investors:
Due to the high property value in the city centre, Pune seems to be pushed to the periphery. The key reason however is the affordable house prices.
Prominence of eastern suburbs:
Due to the improvement in connectivity in the eastern suburbs, like the metro project, these places are gaining prominence.
Luxury isn’t the priority:
It was found that more than half buyers prefer normal amenities over luxuries and modern amenities.
Small is the new big:
Small properties are taking over and leaving the huge houses and apartments behind. A large house needs a lot to maintain and is not preferred in metropolitan cities.