Implementation of the Real Estate Regulation and Development Act (RERA) and introduction of GST has dominated Indian real estate discussions for the major part of 2018. A fair share of home buyers have studied RERA to get a better picture of the upcoming possibilities while others continue to decipher the terms and their impact. As buyers continue to speculate the future of real estate in 2019, experts at Mantri Developers share their take on the commercial and residential aspects:
Real estate in 2018
Builders across the country witnessed a stagnation, if not downfall, in their stock market pricing and positioning. Experts account NBFC crisis, liquidity issues, and firm interest rates as the key factors for multiple company’s receded share performance. However, by the end of the year, residential sector hinted at picking up pace.
Considering the figures of last three years, the count of unsold inventories has decreased along with new projects in affordable as well as the luxury residential segment. On the other hand, the commercial counterpart looks more promising with developers tackling the availability issue.
Commercial realty expectations
Though residential sector didn’t yield the expected numbers, builders focused on improving the downgraded quality of work space. Companies with a diversified portfolio have made substantial annual earnings due to occupied space and corresponding rental income.
Established projects including Mantri Square Mall and other commercial projects continued to deal in healthy business while new and veteran developers try to establish their ground in the sector. Furthermore, co-working spaces, a concept spreading fast in corporate metropolitan hubs, are expected to make headlines in 2019.
Residential realty expectations
Key metropolitan including Bengaluru, Hyderabad, Pune, and Mumbai witnessed demand surge in 2018 and are expected to ride the high tide in the upcoming year. Companies that target low and middle-income housing were comparatively stronger because of quick completion and on-time delivery. Following this trend, many ‘A’ grade builders tried, and some succeeded, to enter the bracket of real estate. Talking about accolades, Mantri Lithos by Mantri Developers won the Best Residential Project of the Year award at the 10th Realty Plus Conclave & Excellence Awards.
All that said, real estate in 2019 is expected to display a substantial growth and proceed on the road to recovery with increase in sales. Premier builders across the country are expected to launch new projects, thereby increasing the choice quotient for home buyers.