Post the revival of the Indian real estate sector through a series of initiatives by the government, the confidence of the homebuyers has increased with a clear understanding of the market, says Madhusudhan G, Chairman and MD, Sumadhura Group.
The developers, on the other hand have also witnessed a smooth regulatory business process. This development is expected to help increase the cash flow in Indian real estate sector in 2019.
In the approaching year, there will be a huge scope for the commercial real estate due to the increasing number of grade-A office spaces for start-ups, co-working places and e-commerce which are also the key drivers of this segment.
IT parks in terms of location and amenities will also emerge as an exemplary trend for commercial real estate growth in India.
Rentals in commercial realty will become an epitome of growth, as the investors tend to rent a commercial space rather than buying it. Also, the increase in educational institutions in metro cities will drive student housing, which is a huge unmet demand in the country.
Another rising sector is warehousing, which will also have a strong grip in the market. There has already been a sharp increase in the demand for organized warehousing due to the advancements in e-commerce.
Now, with the liberalization of FDI policy, the demand for warehousing industry is expected to escalate more in 2019.
The electronic and white goods segment is expected to be another key driver for growth in warehousing, as the need for substantial warehouses in urban and semi-urban areas will increase.
According to a recent industry report, India is set to witness investments close to INR 50,000cr for creation of warehousing facilities across the country between 2018 and 2020.
The government has also taken steps by announcing certain amendments in the taxation and regulatory features which will definitely help the Indian real estate grow.
RERA is streamlining the real estate, ensuring that the buyer gets full value for the money spent in buying a home. The central and various state governments are also announcing single window approvals for real estate. If the same becomes effective, it will contribute significantly to the growth of the industry.