The affordable housing segment is expected to continue to drive the real estate sector in 2018 with several developers and institutional funds eyeing opportunities in this space led by better returns. The end-user demand in this segment along with the government’s thrust through incentives such as granting infrastructure status is ensuring a rising appetite for such projects across the country.
The established developers are expected to expand their scope of business categories. For instance, some branded developers, catering to the ultra-luxury segment, expanded their focus on compact, efficient, boutique homes for high and mid-level income category of buyers, a trend that is expected to gain further momentum.
With both regulatory and taxation policies in the form of Real Estate (Regulation & Development) Act, 2016, and Goods & Services Tax (GST) in place, property development environment will be stable and make the business a more standard process.
“2017 was a precursor to the much-needed stability of the residential market as seen in the nature of launches, which was led by affordable housing. The sector is likely to continue realigning itself to end users’ demands well into 2018,” ..
With only the affordable housing segment seeing a rise in launches in 2017, the new unit launches in residential saw a decline of 35%. The total estimated new residential units were around 74,000 across India’s top eight cities, with Mumbai constituting nearly 31% of these, followed by Pune with 15% of all launches. Affordable housing saw a y-o-y growth of 6%, with Mumbai leading the trend, showed Cushman & Wakefield data .