What would be the prospect of real estate in the year 2020?
The
year 2019 did not go well for the Indian real estate sector. It continued to
remain stark due to the funding crisis amidst grappling NBFCs and the banking
sector. On top of that, the economic slowdown during FY 2019-20 made the
situation worse. All these factors attributed to the poor demand for the
housing sector. However, there has been a rise in demand for offices and
commercial spaces.
Two
major reforms were introduced in the country- the Real Estate Regulatory
Authority (RERA) and Goods and Service Tax (GST). These reforms had a negative
impact on the sector and the current state is such that there is a huge number
of unsold units and flats in
Hyderabad and other cities of India,
despite the requirement for the house is high in the country.
So, what would be the prospect of real
estate in the year 2020?
Commercial
Segment
According
to a recent report, despite the economic slowdown in the year 2019, the Indian
real estate sector is expected to grow by 5% to reach $6.5 billion this year.
This projected growth will be fueled by huge demands for office spaces from IT
companies. It is expected that real estate sector will gain its momentum this
year.
For
example, Hyderabad stood first among all Indian cities in terms of office space
transactions that touched an all-time high of 1.2 million square feet. This is
mainly due to the growing IT/ITES sector in the city and the increasing demand
for co-working spaces.
Housing
Segment
The
housing segment in India’s top cities saw very little growth and recorded a
marginal rise in the year 2019. The economic impediments such as slower GDP,
poor consumer behavior, etc. were responsible for the reduced demand for
residential units throughout the year. However, the recent fiscal and monetary
movements taken by the government and central bank augurs well for the real
estate sector.
The
government’s focus on providing affordable housing and regulatory reforms like
GST and RERA will give impetus to flats for sale in Hyderabad and other cities in India. The demand for residential units
slowed in 2019, but it is expected to pick up in the year 2020.
Overall,
it can be concluded that the year 2020 could be safe to invest in the real
estate sector. Multiple projects are being launched in different cities of the
country to meet the growing demands of homebuyers and companies looking for
office spaces. Seeing this trend, it can be said that this could be a
prosperous year for the real estate industry.
N K Realtors, one of the leading
real estate companies in Hyderabad, has many projects going on in the city.
They offer a wide range of services that meet your property needs such as
flats, apartments, plots, etc. If you are planning to buy an apartment in Hyderabad, then
N K Realtors can be a perfect choice for you. With their impeccable service and
commitment towards providing high-quality affordable housing, they can fulfill
your dream of having a home in 2020.
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