5 Big Questions Real Estate Will Be Asking In 2020
Happy New Year 2020 to one and all!
Here are some questions that I came across from a friend who is not an avid real estate investor but saw a potential and was seeking my advice. I have tried to answer some of the majorly asked questions.
The first and foremost question that almost everyone nowadays asks is how the real estate market is reacting to the global slowdown?
In 2019, we saw a low housing demand because of the economic depression but a significant recovery is seen post-Diwali. Albeit, there has been a growth in the GDP, it was 6.8 in 2018 and came to 7.0 in 2020, more growth is predicted in the near future. It is going to be a good year for real estate investments, also because of better government initiatives to home buyers’ advantage. And so, the early trends of 2020 are positive enough to believe that gradually we are coming out of it.
If there is a turnaround, what will lead the market, residential or commercial real estate?
We will see very good growth in both residential and commercial spaces, the major reasons are India’s ever-growing population and increasing trend of urbanization. They will play a big role in leading the demand for growth in residential as well as commercial units. Moreover, the government is also focusing strongly on improving the quality of living standards and fulfilling the dream of PM Shri Narendra Modi of housing for all. Emerging demand of residential and commercial property will pick up the real estate sector.
What will be the impact on affordable housing due to pressure on input cost?
Yes, there is going to be a marginal difference due to input cost rise, however, the said impact will be nullified by a reduction in the interest rates. The consumer has started taking a home loan with confidence, for its affordability. It has already started encouraging growth in affordable housing. In our country, there is a major scope for an increase in the housing loan that will bring a great momentum in real estate.
Will sustainability play a major role in real estate?
Sustainability is the future of real estate. As sustainability is becoming a goal of some of the biggest countries in the world, it brings a huge scope of positive change. With the upcoming sustainable technologies, there will be a reduction in the environmental impact. The new technologies being energy efficient, it will also help with a long term saving. All these reasons will cause extensive growth in the investments in sustainably smart infrastructure.
What will draw more customers to buy real estate?
Some of the aspects that will draw customers to real estate are- growth in urbanization as we saw 30.9% population in urban areas in 2010 and 34.8% by 2020 and significant improvement in per-capita income as well. And so, there will be an increase in the demand for commercial spaces due to the rise in the number of vacancies and expansion in the working population.
Hope this article helped you!