The real estate market in the year 2018 has shown impressive growth rates in all aspects. The investors have implemented this growth rate into their favor and decided to get more properties to enhance their portfolio. The new market has new hopes for families and investors. The previous year also earmarked the rate of home acquisitions from the millennial families as the mortgage rate was low. At that time, the price of the properties in India was higher. This year, the real estate industry might not be showing the expected turn of events. As per the experts, the industry might show slag on the growth rate.

Increased mortgage rate in 2019

The price rate of the properties increased considerably within eight years. It took the highest growth rate previous year but did not affect the acquisition rate from the investors. Everyone thought that the investment will bring a better ROI in the future years. The year 2019 might give a better chance to the buyers this time. The sellers will not enjoy the privileged they exploited in the previous years. The ball will be in the court of the buyers this time.

In 2019, the price rate will be halted or might get reduced due to many reasons. The mortgage rate was witnessed to be a new low in the previous years due to the elevated economy and recession. The rate increased but not in an impressive manner. This scenario will change in the year 2019 as the mortgage rate will increase.

Real estate will continue to be a major GDP sector

The growth in the Indian GDP is also boosted by the growth in this industry. The real estate sector accounts 6% to 7% of the Indian GDP. The industry supports more than 52 million lives. In fact, the experts are expecting a generation of more jobs amounting to 15 million within the next five years. This expectation is supported by the fact that the industry will increase its value even more.

According to the assessments, the real estate sector will focus more on the lower and upper middle class families and will provide them with the best housing options. The years-old ideology of providing elite homes at a high price will change in due course of time. It means that the leading brands will concentrate more on affordable housing rather than creating elite projects all over India. The increased requirement of affordable housing will lead to the growth in job opportunities too. In fact, the developers will show more responsibilities and value propositions towards the end users or the consumers. The higher transparency brought down due to the implementation of new RERA guidelines will also make this possible.

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Expected strengths

The implementation of IBC, GST, and RERA will automatically strengthen the dealing segment of this industry. The accountability and transparency will be escalated creating more space for the homebuyers to feel safe and channelize their hard earned money for acquiring homes. On the other hand, the financial institutions will also provide better loan schemes to the homebuyers.

As the price of the properties has been stalled since a few years, the industry has witnessed a 13-15% decline in the inventory section. The stagnant value of the properties boosted the acquisition of the assets even more.

Weakness expected

The NBFC-driven finding for the real estate segment is getting higher in terms of capital whereas the recovery rate has reduced due to the increased cautiousness maintained by the buyers. The pricing environment is in turmoil and it might turn out in favor of the homebuyers in the long run.

Opportunities

As mentioned earlier, the housing plans will become more affordable for the homebuyers. It will now be easier to own a home as the price of the existing properties will remain stagnant. In fact, the developers are planning to concentrate on more affordable housing schemes.

The developers will adapt to the new business models to survive in this stringent market. The industry has become more structured and consolidated. Due to its elevated transparency and new business models, a home buying venture will become more feasible.

Conclusion

It will now become easier to find a new home and invest. If it is a real estate investment then prepare for a fruitful future due to a well-appreciated asset ownership.