New policies and the practices such as RERA, REITs, FDI, GST and demonetisation have positively and adversely affected the real estate industry in the recent past. Economic experts predict that many more reforms aimed at the real estate sector will soon make a foray into the market, which will alter the dynamics of the industry. The new legislation, trends and reforms have the power to reshape the realty sector, and knowing of them will help you become wiser investors.
Here is the list of new trends that have and will impact the real estate market in India.
- Better transparency in purchase and completion
With the introduction of the RERA, the Real Estate (Regulation and Development) Act 2016, the property registration process has now become simpler and is inspected by governing bodies at various levels. The government is now emphasising fair play, wants to adopt a professional system, and have just practices in place for developers, builders, and investors. As a homebuyer, you can now benefit from RERA as the developer for your prospective home is now more accountable for construction timelines and has to officially inform you about the details of the project. Moreover, the developers have to pay penalties in case they delay construction or charge you unjustly.
- Higher amount of foreign investments
In the recent past, the Indian real estate industry has witnessed a steady growth in investment from foreign shores. This is due to the marked GDP growth of the past five years, incremental positive turnover, and change in governmental reforms. With RERA in place, foreign investors are doing direct investments as well as offering joint venture bids to private equity owners. Therefore, because of drop in property rates and transparency in transactions, a lot of NRI investors are planning to invest here to earn good returns on their investment. This may drive prices up in the short-term while also offering good returns on sales.
- Increased construction of eco-friendly homes
An increasing awareness regarding the environment as well as government focus on green building has seen builders increasingly use eco-friendly construction materials for their projects. As per a recent report, 10-12% of the total building projects in India are registered as green buildings. The best part is that such construction is not relegated only to high-end projects. For instance, any Sobha Dream Acres review will tell you that this project in Bangalore is one of the most affordable green housing projects in the city. The concept of eco-friendly homes is not only good for the inhabitants but beneficial for the country as a whole. This is because these projects emphasise the concepts of recycle and reuse, which in turn reduces the carbon footprint and decreases the emission of harmful pollutants.
- Powerful technological advancements
The ‘Smart City’ initiative by the government is another trend that is fuelling the real estate sector in India at present. More and more homebuyers are looking for smart automated homes, tech-enabled workplaces, and automated security systems within their houses. To fulfil this need, developers are integrating innovative technology and infrastructure within their projects. For instance, projects like Godrej Eternity in Bangalore brings a lot to the table by assuring you of smarter amenities at your doorstep. Again, this is not reserved for just the premium section, as the Godrej Eternity price starts at Rs.34 lakh for a 750 sq. ft. 1 BHK home. This way, you can invest in a smart home while staying well within your budget.
In order to make the most of these real estate trends, start your investment in a residential property today. To fund your purchase conveniently, take a home loan from Bajaj Finserv Homes & Loans. Avail an amount up to Rs.3.5 crore on nominal interest for a flexible tenor and enjoy an array of benefits such as easy repayment options, property search assistance and minimal documentation on your loan. To get an instant approval and a customized deal, check your pre-approved offer here and become a homeowner easily and affordably.