The real estate segment in India is currently going through a transformation due to the advent of new concepts and emerging trends. The residential segment is converting more into an affordable housing platform for the home seekers in the leading cities in India. Last year, the growth was impressive as the degree of investment was also quite supportive. This year, the real estate development might slow down in the residential section as the number of projects has increased more than the required volume in the market.

The specific changes will lead to a new dimension where the commercial spaces will go through a giant makeover. A current survey from realty website showed that there will be a significant demand for co-working space in the metropolitan cities and leading settlements in India. This means that the businesses are now looking for more sustainable options rather than taking an unnecessary risk by investing heavily in commercial assets.

Trends that will shape real estate scenario 2019

The Indian real estate has gone through a drastic change due to the amendment of new rules based on RERA. After its introduction, the unstructured industry has become more organized and transparent, making it easier for the home seekers to find better options at an affordable price range. The year 2019 will be earmarked due to the newest trends emerging in the market.

Sustainable office space

The days are gone when the business owners have to concentrate on owning a commercial space or renting it paying a hefty amount. Now is the time to shift towards more sustainable options such shared offices or co-working space in India. It means that a floor will be converted into small offices which will share the basic amenities such as reception, cafeteria, conference rooms, lounges, etc to reduce the overhead costs.

The government is providing a unique platform for entrepreneurial ventures from all over the country. The emergence of new businesses and ideas are being fuelled by elegant resources such as the co-working space. The conventional space for commercial purposes will get a giant makeover with this new concept implementation.

Growth in commercial space demand

The firm growth in GDP will also fuel the expansion and attract more investment. The office space acquisition has increased by 20% previous year and it is expected to grow even more. This particular turnout of events is also happening because of the easement in doing business in India.

Read more- Know what stamp duty is before buying a house in India

Residential demand and supply alignment

The Indian population will witness a huge change when a majority of the millennial population will turn into its 30s. It means that this part of the population is the professional segment working in various domains. The necessity of residential assets will also witness a huge rise due to the increased disposable income of this particular segment. The developers will try harder to align the floor sizes of residential units in order to meet the expectation of this professional population. This ensures that the industry will concentrate more on affordable housing rather than elite projects.

Raising fund for real estate projects

The real estate segment was not organized well a few years back. This is why the major banking institutions did not want any risk to take by allocating money via loans to the real estate developers. The loan crisis in this industry led to the introduction of non-banking financial companies (NBFCs) such as private equity firms, etc. Despite the introduction, the developers are still suffering from the NBFC crisis. The recovery of this sector might get delayed if this problem is not solved. The existing projects might have to reduce the price of the available properties.

Final words

The scenario will differ from city to city. For an instance, the rate of real estate properties in Kolkata is still in an affordable range considering other metro cities in India. Lack of proper job opportunities is causing the population to shrink. On the other hand, Hyderabad and Ahmedabad are witnessing a growth ranging from 2% to 8%. Bangalore is currently facing an 8% reduction in the price.

The growth of the upper and middle class population will also boost the real estate scenario in the leading cities. In fact, there will be a significant increase in the NRI investment segment in this industry.