Real Estate Outlook for next decade
May 06 2020
India’s real estate sector has been a challenging spear. With its rapid upward trends and unexpected downs this rollercoaster ride has been an unpredictable journey. With not just property value, but even technology starting to play a crucial role in real estate segment, what possible future will this sector be holding is what we tend to discuss here.
The latest advancement that affected the sector positively was the GST – Goods and services tax. Eliminating the need to pay multiple varying taxes from both buyer and seller ends the gst on real estate has flashed more clarity on an easy process. It is also predicted to bring down construction.
In the next decade to come it is predicted that investable real estate choices will spread and expand across the globe especially in newly emerging economies. With rapid growth in few cities across the country , a wide range of return opportunities will open up although not without risks that are fundamentally involved. In fact a completely new set of risk factors may also emerge along these years.
With respect to technology affecting real estate, whether or not the effect will be positive is debatable. Today advertising has taken a completely new face with emerging technology and data availability. Companies have access to much private data including your interests based on search histories meaning tomorrow real estate advertisement may appear completely customized based on your choices and likes. But this can happen significantly on a large scale only if the privacy laws stay as lose they are today, which might not be the actual case in the next decade. Also, advancements in imaging and photography have been a great boost for real estate in online marketing. With VR (Virtual reality) and various other facilities available, booting your conversion to a sale for a seller becomes hassle free. This also helps buyer cut down multiple trips and visits to understand the purchase better. But again the unstable nature of the sector always stands as a barrier along with resistance from agents and brokers from getting over their conventional methods.
There is also a predicted expansion in new companies emerging that might take over the real estate spaces for creating customer value for presenting the space for a completely different purpose from what the owner may intend, example AirBNB. This breaks the perception of people having to look for hotels or real estate and makes it more disposable and reusable. With people choosing more nomadic lifestyle these establishments are expected to face a peak during this period.
Also, government bodies today are planning strategically to make each family own a home. This has started with decreasing home loan rates enabling more people to opt for purchase over renting. Also it is expected that global capital flow into India real estate will see a significant shoot up in the upcoming years hence flowing the values upwards.
India's real estate escalading to a new era will present more affordable housing options which will eventually lead to related employment and shoot in GDP. The prospects of the entire ecosystem is bright.
A good read to understand the upcoming trend
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