As 2016 takes its exit and 2017 is on the brink to take off, if one takes a look back and recall the global headwinds and the cash crunch, 2016 came out as a challenging year for Real Estate.
The year-end might open doors of opportunities for the real estate investors with the new beginning of 2017. If you are planning to invest in property this New Year, you must take a look at these Realty trends for 2017 Realty investments.
“What’s going to be buyer’s market this year?”
These experts from round the country shares the top trends to watch out for 2017.
Demand for housing property will be on rise
The passing by year, 2016 has been quite profitable in the starting months of the year. After demonization the real estate market has come to standstill. But in 2017, it is expected that the demand for affordable housing sector will increase, following various measured taken by government as well as affordable housing developer.
“Earlier affordable housing has received less attention from many developers because of cost of construction has increased, but after various government policies and effect of demonization developer are looking towards affordable housing sector only” says Rohit Poddar, Managing Director of Poddar Housing Ltd.
Will 2017 going to be the affordable housing property v/s luxury housing property?
Quick look at the top residential hotspots
Ashwinder Raj Singh, CEO of Residential Services, JLL India reveals the top residential hotspots for this year.
“These cities are more or less regulars on most hotspots lists, but there is a sound rationale behind their consistent performance year after year. Not only are these cities attracting new businesses and industry, their respective governments are also investing resources in building adequate infrastructure to attract capital” adds Ashwinder Raj Singh.
Growth in Rental Flats
Due to the high price of houses, rental flats will an increase in numbers.
“Earlier, buyers used to pay 30% of the total amount in cash for buying the flats so that they have to pay stamp duty only for remaining 70% but after demonization the cash transaction is completely over as no builder are ready to take cash and vice-e-versa with the buyer” says Rohit Poddar.
All this has made situation bad for the ready flat. People are moving towards the rental flats they they are finding is cheaper compare to the ready flat they can owned it.
Surge in Demand for Office Spaces
There had been a positive phase for office spaces in 2016, so to say the Realty experts expects a surge in demand to continue in 2017 for the office space requirements of sectors such as manufacturing, logistics, FMCG, etc. Office space required by eCommerce/start-ups and consulting firms are rising every day, as these sectors are expected to continue with headcount addition to accommodate their business growth in the years to come.
As the International banks and financial institutions are under increased cost and compliance pressures and are therefore expected to outsource more jobs to India. With the depreciation of the INR versus the USD and Euro is likely to play a major role in this.The pace of growth of top technology firms was in single digits due to global uncertainty and technological disruption.
"From the next year onward, some of these companies could see some implications from Trump’s policies, but it is too early to predict accurately how these could play out. It remains to be seen if Trump's policies could negatively affect lower-grade work carried out by contact centres in India" says Anuj Puri, Chairman and Country Head, JLL India.
Adoption of technology will continue to increase across businesses in 2017. Pertinently, the ratio between growth of a business and its real estate requirements will change, as technology is proving to be a disruptor across sectors.