The Indian real estate market, which was at its lowest level in the past four to five years, has witnessed a recovery in 2018, owing to greater transparency and greater consolidation, says a report by IKON Marketing Consultants, which was released on March 30, 2018. The report is based on a pan-India study, conducted by the Ahmedabad-based marketing consulting firm. The study revealed that HNIs (high net-worth individuals) have already started investing in the realty sector at current prices, expecting returns of 20 per cent to 30 per cent, within the next two years.
More foreign investments are likely, due to the government’s decision to allow 100 per cent FDI (foreign direct investment) in the sector, the report said.
However, the residential sector can become more about space than size, going forward, the firm said. “Home buyers in leading 10 cities like Ahmedabad, Surat, Mumbai, Pune, Bengaluru, Chennai, Patna, Vijaywada, Kanpur and Jamshedpur, are now looking for more livable space than overall area,” it said.
“In the commercial and hospitality segments, no major changes can be expected in the near future but demand may pick up gradually, for ready-to-move properties from 2020,” it added.
The report said tough sectoral reforms, such as demonetisation, the Real Estate (Regulation and Development) Act (RERA) and the Goods and Services Tax (GST), have already been factored in and the market will see their positive impact in the coming years.
Azaz Motiwala, founder and CMD of IKON Marketing said, “2020 will be the year of boom for the real estate market in India and (the trend) it is likely to stay for the next three to four years. FDI flow and demand from actual buyers, may increase at the beginning of the coming decade.” Today, buyers have become very choosy and real estate companies will have to change their approach to attract them, Motiwala added.