New Year 2020: Government reforms lead the way to revival for real estate
With the dawn of a new decade, the industry looks to be heading towards positivity and growth. Some positivity is seen in the market as a result of various announcements made by the government this year. Government announcements like NHB raising liquidity to housing finance companies, relaxation of ECB funds, and approval of a Rs 25,000-crore fund have all been made in positive stride. Covering 1,600 projects with 458,000 dwelling units under the announcement will help in boosting buyer confidence and is also likely to generate considerable employment.
Ashok Mohanani, Chairman EKTA World Vice President, NAREDCO Maharashtra, “The real estate industry has been one of the most prominent pillars of the Indian economy. 2020 is anticipated to be fruitful due to the initiatives taken the government. With the exponential overhaul of infrastructure and the upsurge of connectivity we are anticipating 2020 as a year of revival. Now because of the cabinet approval on Partial Credit Guarantee Scheme to NBFCs and HFCs, the sector will see spur economic growth by increment in liquidity and cash flow by attracting investors and home buyers.”
Rahul Grover-CEO, SECCPL, “Real estate sector is one of the most important sector contributing as much as 7-8% of GDP and amongst the biggest employment generators. Any revival in growth needs active participation from the real estate sector. Moreover, shelter being one of the basic needs is a good indicator of the fundamentals of the economy. There are some underlying themes for the real estate sector which may play out in 2020 and will likely continue in the foreseeable future.”
Ashish R. Puravankara, Managing Director, Puravankara Ltd, “The real estate industry has certainly evolved from brick and mortar to service driven product offering. 2020 has a great potential for both residential and commercial real estate business. We believe that with rapid urbanisation and white collar migration will ensure strong growth of the commercial sector which will in turn translate into higher residential demand. Affordable housing will continue to be the key growth driver, and the luxury housing segment will go beyond the traditional definition, with more focus on sustainable living, state of the art technology and customisation as per the need of customers.”
Manju Yagnik, Vice Chairperson Nahar Group and Vice President NAREDCO (Maharashtra), “The year 2019 will be remembered as the period which witnessed the maximum policy interventions from the central government and the RBI for the real estate sector to boost both, the supply and demand scenarios. We hope that the benefits of such policy initiatives become visible in 2020, which will help in kick-starting the recovery in the real estate sector. The housing market currently has become very dynamic with real estate firms continuously adapting to the changing consumer preferences. This trend will continue in the next year as well. “
Vikas Jain, Managing Committee Member, CREDAI MCHI RAIGAD, “In 2020, we expect a rise in the interest towards both residential and commercial properties. Although commercial properties have witnessed strong absorption over the last two years, revival in residential is just starting. In Mumbai, the Wadala area has been in demand even in slump. Even fast-growing MMR like Neral and Karjat are too on homebuyer’s cards. Unit sales have doubled in the last 3 years of these suburban areas and this growth will continue as more quality projects begin works. We expect more than 5000 units to be sold in the span of next 2 years”
On the industry front, the Rs 25,000-crore AIF for the real estate sector will help in completion of those real estate projects which are pending due to lack of last-mile funding. As home buyers become risk-averse, the demand for ready-to-move-in houses will be more than the under-constructions ones. Developers with a proven track record will remain as the preferred choice for consumers, who are now seeking transparency and accountability.
Policies like RERA will continue to streamline the projects and bring increased transparency for home buyers, while the ongoing infrastructural work will accentuate the connectivity in the city, thus increasing prominence for new emerging localities. On the developers’ side, with the millennial generation entering the economy, there was a significant shift in the real estate market.