The real estate sector in India has long earned its position as one of the most reassuring sectors to invest in. With access to several safe investment options, the market offers promising returns too. However, it is important to understand the current real estate market situation in the country thoroughly to be able to take an informed and carefully thought out investment decision.
Here are the top real estate market trends of 2019:
Real estate market is booming
After a low for a couple of years, the Indian real estate market has begun growing steadily at 9 per cent p.a. By the year 2020, it is expected to grow to a massive $180 billion.
The price drop in major cities
There has been a sustained and effective drop in prices of real estate in cities like Mumbai (3 per cent), Pune (4 per cent), Chennai (3 per cent) and Kolkata (2 per cent). Also, on a yearly basis, there has been a jump of 12 per cent in housing sales as well as a 36 per cent rise in new launches.
Rising demand in Tier I and Tier II cities
With better job opportunities and bloom of the IT industry, the cities like Bengaluru. Mumbai. Hyderabad and Chennai have seen a rapid influx of population. This, in turn, has increased the demand for middle budget apartments as well as luxurious homes. Investing in housing in these cities as well as in Gurgaon, and Noida can earn great returns. As rental homes too are on the rise, purchasing a home that you can later rent out can serve as a second income and contribute positively to your finances.
Collaboration between real estate developers and the Government
A number of real estate developers are teaming with the Government to introduce a host of new housing projects, which are centred around the requirements of the mid-segment home buyers. Focussed around comfortable living with access to all necessary facilities and modern infrastructure, these houses are designed to be budget-friendly too. In this regard, several steps have been taken to revive the housing sector in the Union Budget 2019, along with a positive drop in price.
Pradhan Mantri Awas Yojana
The Pradhan Mantri Awas Yojana is a housing initiative by the government of India, aimed at providing ‘Affordable housing for All by 2022”. With tax incentives, the PMAY, also known as Modi Loan Scheme, has helped even the mid-budget residential segment to progress at par with the high-end properties. The government aims to build over 1.95 crore houses under the Pradhan Mantri Awas Yojana Scheme.The real estate market in India is booming and is expected to see a consistent positive graph for the coming years. Currently, it presents a brilliant opportunity to invest in the flourishing sector that in all probability is likely to reap favourable returns in the future.