New Delhi, January 08, 2019: The real estate sector in India witnessed a strong comeback and revitalization during 2018.The year 2019 brings lot of expectations to the real estate industry with positive forebodings. The latter part of 2018 has seen increased sales and lot of new launches. This trend will get strengthened further.
Mr. Pranav Sharma, Founder & Director, Felicity Adobe LLP
The Major highlights of 2018 I feel is that the Industry in focusing on more affordable housing units and launching projects which is line with the market demand. Sales have increased by around 40% in the first Three Quarters of 2018.
Another major highlight is the Government’s Decision to Lower the GST Rate for affordable housing projects. This Initiative by the Central Government has given the sector a new lease of life in 2018. This has helped the prices to reduce and the market is driven by end users.
Affordable Housing has mushroomed in the country and is fast gaining traction and is boosting the sales in Real Estate Sector which is a good sign. Increased interest in affordable housing is expected to be witnessed due to the increased participation by the Private Sector.
There exists a huge dearth in the supply of homes primarily demand by the EWS & LIG group. But not anymore, affordable housing has emerged as a trigger driven by the Central Government initiatives and private participation.
Major Milestone is the lowering of GST Rate on Affordable Homes. This in turn helped to cut the cost of the flat thereby driving more sales & boosting the sector.
Our major milestone this year is launching three Projects in a year and touching the lives of Around 500 People by offering them Homes.
Around 1.25 lakh sqft sold in first year itself.
The major challenges are the approval process and land acquisition costs.
Our Expectations:
- Speedy Approval Process which will help us to launch more Projects.
- Speedy Dispersal of PMAY Subsidy to the Eligible Customers
- Further reduction in Home Loan Rate
- Financial Assistance by the Bank to the Non-Salaried People to buy a Home supporting Housing for All
We have around 05 Projects in Pipeline for the year 2019.
Mr. Viswa Prathap Desu, Sr. Vice President Marketing & Sales, Brigade Group
The Real Estate Industry started settling down from the second quarter of 2018 post the effects of RERA and GST in 2017. Big players like Brigade Group were able to move on without much downtime. We could see a marked improvement in the residential sales in Bangalore & Mysore markets. It was interesting to note that high ticket luxury apartments found buyers.
One could see an increased interest from end users for ready to move in apartments. The year 2018 seems to show a positive trend developing in the residential market which only improve in the coming year
However, with the bank rates going up steeply, it has become the spoilsport, but not making a major impact on customers’ decision making.
2018 saw the launch of multiple projects by Brigade across directions in Bangalore. After successfully completing the first set of Senior Living Residences going by the brand ‘Parkside’, Brigade launched this concept at three more locations – Mysore Road, Jalahalli & Sarjapur Road. Parkside residences are designed for those who are above 55 with specialised amenities and facilities suited for them. Of course, anyone can invest in these properties.
Another emerging trend was the launch of affordable housing projects. Increasingly, there is a good response to smaller size apartments from the first time customer who can also avail the benefits of PMAY scheme launched by the Government of India.
We had a total of six new launches in the second half of 2018.
The challenges faced in 2018 were the increasing bank interest rates, the sluggishness of 2017 which has started reducing.
The year 2019 brings lot of expectations to the real estate industry with positive forebodings. The later part of 2018 has seen increased sales and lot of new launches. This trend will get strengthened further and many developers including Brigade will have new launches coming in.
There is talk of GST getting reduced and if this happens will help sales improve a lot and give the required confidence to the customer.
We are planning to have around 6-8 launches in 2019 spanning across. We have also increased our team strength considerably gearing up for the same.
Mr. C N Govindaraju, Chairman & Managing Director of Vaishnavi group
The real estate sector in India witnessed a strong comeback and revitalization during 2018. Many of the teething problems posed by various regulatory reforms have more or less been ironed out. The introduction of many landmark reforms (such as RERA, GST, Insolvency and Bankruptcy Code, adoption of REITs, etc.) in the last 2 – 3 years has sown the long-term seeds of a healthy ecosystem assuring greater transparency, accountability and importantly, customer assurance and confidence. It is heartening to note that in spite of the frequent disruptions, the sector has proved to be resilient. The Centre’s focus on affordable housing has given the sector a new lease of life. Rapidly evolving technology and the changing regulatory landscape is redefining how the real estate business is conducted and managed in the Indian scenario.
The adoption of technology across the real estate landscape has been one of the key trends for the industry. There is also a very noticable and concious shift towards green buildings. At Vaishnavi, we have been at the forefront of the adoption of best in industry technology for construction which assures greater quality and faster delivery. In fact, Vaishnavi Serene, our revolutionary new project at Yelahanka will be the first residential project in India to use advanced European off-site precast construction technology.
As a developer who has always believed in ‘building from the heart’, we have also ensured right from the planning stage that all our buildings adhere / conform to IGBC Gold Rating at the very least.
It has been a mixed year for the residential sector in particular. The residential segment contributes between 75 – 80% of the overall real estate development in the country. We see that on one side, the policy push for affordable housing is reviving the segment from the slowdown witnessed over the last few years in terms of both new launches and sales. However, we see that buyers continue to be largely cautious and sales have been, at best, steady. Sales of premium residences were sluggish while affordable housing, as a segment, gained traction.
The Bangalore commercial leasing market will continue to be encouraging and will outperform the other major commercial real estate markets in India. We expect to see better traction in the residential segment especially in the mid-income and affordable housing segments.
Corporate Comm India(CCI Newswire)
