The real estate market is ever-changing and fast-paced. It is governed by socio-economic factors which mold and remold its shape every year and every quarter. With recent developments, Indian real estate is going through a major metamorphosis. Moreover, this transformation is likely to continue in 2019. We take a look at the top factors which will impact the real estate market in 2019.
1. Global capital influx: India has the world's sixth largest economy and is continuing to expand its market. With Foreign Direct Investments (FDI), investments in the Indian market are accelerating its growth. The increased influx of capital along with improving infrastructure and regulations are boosting the appeal of Indian markets. As the markets continue to grow, the real estate market too, witnesses growth. According to a study by the Economic Survey of India, the Indian real estate market saw an FDI of 258 million dollars. This investment rate snowballed in 2018 and is likely to do so in 2019.
2. RERA: Real Estate Regulation and Development Act (RERA) has proved to be transformational for the real estate market. RERA regulates and governs the real estate sector. Due to the provisions laid out by RERA, home buyers stand to benefit, thereby boosting confidence in property investment.
3. Increasing demand: India's economic growth has led to a growth in employment and increased migration to metro cities. As a result, the need for commercial and residential property has mushroomed. Along with ever increasing needs, banks are offering attractive home loans offers, low borrowing rates, and manageable EMIs which make buying property affordable. To meet these demands, developers and builders are increasing investments, constructing entire residential townships and commercial hubs for office spaces.
An example of how the real estate market will shape up can be found at Panvel. The Navi Mumbai suburb with its developing infrastructure, business hubs, and connectivity has made Panvel a hotbed for real estate. Naturally, with development families are settling in Panvel. Thus, adding to the demand for real estate. Residential projects in Panvel and township projects in Panvel like Hiranandani Fortune City are on the rise. Moreover, Mumbai's international airport is set to make Panvel its new base, and is adding to the property boom. Prices in Panvel are set to rise in 2019 and skyrocket in the next decade. Similar to the growth of real estate in Panvel, the rest of the country too will see the property market grow in 2019.