After the agricultural sector, real estate is the second largest employer. It consists of four sub-sectors such as commercial, hospitality, housing and retail. The rank of India in the Global House Price Index has jumped 13 spots to fetch the ninth position amongst the 55 global markets.
The year of 2018 is going to be a year full of opportunities and new challenges, whether you are a buyer or a seller. Let’s look at how the real estate market will look like in the year 2018.
How will the real estate market will look like in the year 2018?
- Existing projects will be completed: The completion of the existing projects will be prioritized over launching new ones. Thus, 2018 looks to be promising for a good supply of houses across major Indian markets.
- New home sales expected to increase by 7%:The new home sales are expected to surge by 7% over 2018, and the existing home sales are likely to increase by only 2.5%. The year of 2018 looks like a promising year for the supply of good houses. To achieve this, the real estate developers will be redesigning their business processes to streamline the allied and delivery services.
- Interest rates will surge: The interests have risen marginally, thanks to the three small rate increases by the Federal Reserve. This year also, the interest rates will grow. As per some reports, the interest rate on a 30-year fixed loan will reach 5% during this year. This is the highest level since February 2011.
- Two reforms to have a bearing on the real estate sector: With the implementation of the Real Estate Regulatory Act (RERA) and Goods and Services Tax (GST), there will be a paradigm shift in the minds of the global investor. Real Estate Regulatory Act was implemented and introduced in the year of May 2017. The Act was passed to bring in transparency, ensure accountability and bring uniformity in the real estate prices. The impact of GST on the real estate sector is likely to be a mixed bag. The act of RERA is likely to also address consumer complaints.
When it comes to investing in residential projects, Hiranandani Communities is a very good option as it well-known for its township and community projects. The real estate developer has already designed a global community township in Panvel that is spread across hundreds of acres of land. Besides, it also offers studio apartments, 1, 1.5, 2 ,3 BHK flats in Panvel . This project will offer sports and lifestyle amenities such as a basketball court, swimming pool, 24x7 security and a clubhouse.
The Mumbai-based developer has also developed a commercial real estate project namely Hiranandani Business Park. The office spaces in Hiranandani Business Park will consist of an IT infrastructure backbone, uninterrupted power supply, and a stress-free environment for employees.
India’s real estate sector has seen high growth in recent times with the rise in demand for the office and the residential spaces. By 2020, the real estate market is expected to touch US$180 billion.