Real estate in India has been on a constant uphill since the last few years. According to market forecasts, the upward trend in the Indian real estate is likely to continue even in the year 2020. Most importantly, if we go for the Indian real estate market forecast 2020; it is likely to go up to $180 billion. This is as per the joint report from CREDAI (Builders’ Association of India) and JLL (global real estate services firm).
In addition, the residential housing market is likely to be a major contributor to the country’s GDP growth. Besides, as per the report, the residential segment’s contribution might double to 11% by next year. Consequently, there would be a huge leap from the estimated 5-6% forecast for 2020.
Indian Real Estate Market Forecast 2020: Factors Responsible for Growth
Let’s discuss some of the prime reasons responsible for the growth trends in the Indian real estate markets.
- Regulatory reforms
- Fast growth in urbanization which has helped create consistent demand for properties
- Steady increase in household incomes
- Rise of more and more nuclear homes for middle and upper-middle-class segments, which promise easy affordability too
Moreover, huge expectations are being set on the new law RERA (Real Estate Regulatory Authority). Accordingly, this would help eliminate unlawful real estate practices followed by some developers and restore trust among buyers.
Indian Real Estate Market: Housing to be on the Rise
Definitely, the easy affordability of residential housing is also expected to create more profitable opportunities for current developers. Furthermore, this would facilitate the emergence of new developers through a boost in sale figures. Besides, the segment is also likely to attract huge investment in 2020.
Positive Avenues for Office Market Too
As for the growth in Indian office spaces, it has shown considerable improvement since the last few years. Without a doubt, this is because of the availability of steady employment opportunities. In fact, the sector has been attracting promising investments since the last 6 years. Moreover, private equity inflow is likely to keep increasing in 2020 as well. Also, with job opportunities on the steady rise, more demand is likely to come up for office spaces, especially those with the latest technologies built in.
FDI Boost Expected in Retail
In fact, with growing urbanization and higher purchasing power among the Indian population, the demand for malls and shopping complexes has been on the rise for over a decade now. Furthermore, analysts predict that this surge in demand is nowhere likely to fade away in the coming years as well. In addition, the multi-brand retail space would possibly lure higher FDI as well by 2020. This is because more foreign brands turn to promising Indian markets for higher sales and growth boosts.
Final Thoughts
To out in simple words, the Indian real estate industry has been witnessing growth trends in the recent past. Undoubtedly, this is because of the steady increase in incomes and rapid migration towards urban areas. Hence, this has created higher demands for real estate. These positive trends are only expected to continue going forward in 2020. As buyers gain more purchasing power and nuclear homes become more affordable in the face of tough competition among developers, the real estate markets would only grow higher.
In this blog, we aimed to share the stance of realty investments in India for 2020. Hope this helps you in taking the right decision.
Is it wise to invest in Indian Real Estate Market in 2020-2021? What’s your say on this?
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