The year 2017 is better known as a year of consolidation and 2018 could be known as a year of confusion. With several changes in policy in 2017, many developers are confused regarding streamlining of the processes.
The major trends in real estate in 2018 are as follows:
Track2Realty has come up with the major trends that would define the real estate market in the upcoming year.
Oversupply Versus Affordable Housing
The focus of the market today is affordable housing, however, it is not likely that every mass housing project will work. Markets like New Rajarhat in the Kolkata region or Noida Extension in Delhi-NCR where the houses are priced at Rs 3500 per sq feet will not be able to attract many buyers.
Serious Research Work
With the year coming to an end, the developers will have no choice but to involve themselves in serious research work in order to understand the demand in the given market.
In the year coming ahead, the mix of right property, right market and at the right price is going to sell. In tier-2 cities, the luxury housing can also be sold provided the developer knows his customer and his purchasing power well.
In the year ahead, affordable housing will surely be the market driver. In some of the markets where there is an oversupply of housing, the projects that are getting sold are those which has aspirational elements added to the projects.
Developers Will Go For Smaller Projects
Developers will have no choice but to go for projects which are smaller in nature. They can also divide bigger projects into phases. By following this, they can save themselves from RERA penalties and the cash flows can be taken care of. In the year ahead, the developers would also keep themselves away from inventory overhang.
Year of Execution
The year ahead will be the year of execution. There are a huge number of projects that are running behind the schedule, this year could see the execution and completion of many houses. It could also witness a good supply of houses across the vast market of India. The developers will try to deliver the incomplete projects first before plunging into new launches.
Joint Developments And Joint Venture
In 2018, the prominent models would be the JV/JD models. There will also be a major industry consolidation in 2018. The larger players in the market will take over some of the mismanaged and distressed developers. Due to this trend, the market could possibly be cleaned up.