10 TAKE AWAYS FROM 2017 TO 2018

Before we speak about this year’s 10 Takeaways, it is imperative that we look at the progress on the takeaways we spoke about in the beginning of 2017. Our key takeaways were on real estate, infrastructure, budget housing, women entrepreneurship, co-working places, and more.

Before we speak about this year’s 10 Takeaways, it is imperative that we look at the progress on the takeaways we spoke about in the beginning of 2017. Our key takeaways were on real estate, infrastructure, budget housing, women entrepreneurship, co-working places, and more. As expected, we saw the real estate sector finally moving towards transparency, the hiccups post GST, and finally the dust is settling down. SURFACES REPORTER had written about the thundering thrust of infrastructure in January 2017 and in 2018, we see more impetus on the same, including rural development.

We hinted about emergence of budget housing. This year, it has emerged as one of the biggest growth drivers. Co-working places have geared huge momentum. As predicted, focus on Women entrepreneurship has risen to the level that the Global Entrepreneur Summit in India with chief guest Ivanka Trump had the theme, “Women first, prosperity for all.” For the first time, of the 1500 selected entrepreneurs, majority were women. Now, let’s have a look at the 10 Major Takeaways from 2017 to 2018. Keep reading Surfaces Reporter magazine!


  1.  2018 will be the year of consolidation for india

For the Indian businesses and Indian real estate in particular, 2016 was a turbulent year, 2017 was the year of landmark reforms and implementation, while 2018 is expected to be the year of consolidation.

As India launched the GST (Goods and Service Tax), its biggest tax reform since independence in 1947, businesses and citizens across the country went through a period of economic chaos.

GST as a reform is a way of formalising the economy and ensuring tax compliance, making it harder to earn black money. The earlier system was a myriad of central and state taxes where the movement of goods was slowed down by products being taxed multiple times and at different rates. The new indirect tax regime unifying the Indian market has four tax slabs of 5, 12, 18 and 28 per cent. It has a new feature whereby goods and services providers get the benefit of input tax credit for the goods used. Technical glitches of the GST portal, high GST rate of many items, unclarity and confusion, led to huge unrest in the business community post implementation of GST. The second half of the year saw a radical reworking of the items within the four-slab tax structure by GST Council, whereby all but 50 of over 1,200 items remained in the highest 28 per cent bracket. 

"2016 was a turbulent year, 2017 was the year of landmark reforms and implementation, while 2018 is expected to be the year of consolidation."

It is too early to count on the positive as the market is slowly settling down from after shock of gigantic reform implementation. It can be said that demonetisation and the introduction of the GST has resulted in formalisation for the SME segment making it easier to lend to them. GST was designed to turn these SMEs more competitive, and level the playing field between large enterprises and them. Market expansion is expected with a reduction of tax burden on new businesses. To reduce tax evasion, GST recognizes both goods and services as one. Under the GST bill, no entry tax will be charged for goods manufactured or sold in any part of India. As a result, delivery of goods at interstate points and toll check posts will be expedited, improving logistics and faster delivery of services.

The year 2017 is perhaps among the unforgettable years for the Indian real estate sector as well. "The disruption created by the tri-reforms of demonetization, RERA and GST seems to be settling in and consumer sentiments are lifting. The sales in last couple of months appears encouraging and the sector is set to enter 2018 on a positive note. In near term, the property sales could rebound faster than expected as the Indian demographics changes – urbanization, smaller families and rising income, may eventually drive up the property buyer sentiments. However, we don’t expect any significant new launches as there is significant stock of unsold inventory and developers have refrained from launching new projects," says Neeraj Bansal of KPMG.

Ease of Doing business in India

As per the report, “Indian Housing Sector Outlook 2018”, the Indian housing industry has shown strong growth over the past few years. Moreover, with rising purchasing power, continuously rising population, growing aspirations, increasing nuclear families, rapid urbanization, government’s intervention to provide easy loans, and so on, the housing sector in India is anticipated to register a strong growth in the coming years. The report also observed that luxury housing is registering maximum growth, owing to increasing HNI (High Net-worth Individuals) population and growing aspirations of people looking for luxury lifestyle. The real-estate developers are also focusing on luxury housing, due to high profit margins available in this segment.

2017 will go down in history as one of the most difficult years for residential real estate developers. As per experts, REITs are set to provide investment opportunities to smaller investors in 2018. India's real estate markets are poised for growth in the medium-to-long term on the back of higher transparency and further settlement. Overall, we see consolidation of businesses and the economy turning positive in 2018.


 2.  Affordable housing segment, the next big growth driver for india

The boost button on Affordable Housing segment was switched on since the government announced Infrastructure status to it encouraging investment in this category. With this, the government has successfully placed the focus on supply amplification of Affordable homes. Until now, most of the housing developments and investment houses were funding for the mid to high-income group. This had resulted in a sharp fissure between the demand and supply for the low-income group. However, the scenario is gradually shifting to where the real demand exists - the so-called Affordable homes.

"There has already been a significant surge in affordable housing projects across eight major cities. Homes priced below Rs 50 lakh accounted for about 71% of the total launches between January and June 2017, a significant 52% increase from the corresponding period in 2016," reported Knight Frank India, a real estate research and consultancy.

"The segment of Affordable Housing is getting increasingly attractive and I would suggest architects and designers to focus on how to be a part of this growth story."

 Affordable Housing which was so far considered ‘down market’ is finally losing this tag and evolving into a worthy & respectable segment - possibly the next big growth driver for the real estate industry. This segment is expected to be the next big game changer of the Indian economy with property gurus expecting a substantial growth rate of over 30% in the medium term.

Ease of Doing business in India

Not surprisingly, many of the big investment houses find it more lucrative to fund projects with a mix of affordable and mid-segment homes in order to capitalize on both the volume and value-based business potential. Affordable Housing is now potentially on the verge of a major transformation. More government incentives and boosting mechanisms for affordable housing are on the anvil as the Budget 2018-19 is approaching. Even developers who paid no attention to this segment are finally finding it lucrative. Government policies like the Real Estate Regulatory Authority (RERA) has infused confidence in buyers for the realty sector. Once which was nearly unthinkable for many, today, first time homebuyers are making purchase decisions for homes that meet their budgets. No doubt, availability of finance is also fueling the demand for affordable housing.

According to Pai of Magicbricks, "As speculators exit the market and end users remain the only buyers, developers are conforming to user expectations and building where the demand is. The affordable homes segment is probably the only segment in the market where demand currently outstrips supply."


 

3. Indians keen to upsize their living spaces

The growth story of India continues even amidst multiple policy introductions and turbulent implementations. Rising affluence is the biggest driver behind increasing consumption. As per BCG Analysis, of India’s five household income categories (elite, affluent, aspirers, next billion, and strugglers), the top two income classes are the fastest growing. From 2016 through 2025, the share of elite and affluent households will increase from 8% to 16% of the total while the share of strugglers will drop from 31% to 18%.

If we trust the survey, the two top consumer categories, elite and affluent, will become the largest combined segment by 2025, accounting for 40% of consumption compared with 27% in 2016. By 2025, wealthy urbanites will be responsible for one-third of total consumption. About 40% of India’s population will be living in urban areas by 2025.

Indians are keen to upsize their living spaces. Property size, however, is not the only concern. Buyers are also looking to upgrade to better areas and increasingly choosing relatively expensive localities.

Indians are keen to upsize their living spaces. Property size, however, is not the only concern. Buyers are also looking to upgrade to better areas and increasingly choosing relatively expensive localities.

Here I am gald to quote Magicbricks. They have done an interesting survey, according to which the percentage of consumer searches reveals that over the past year consumer preferences in both the 2 and 3 BHK spaces has shifted to larger apartment sizes in the 1,250-2,000 sqft range. This could be motivated, in part, by the government's decision to increase carpet area of houses eligible for interest subsidy under the Credit Linked Subsidy Scheme (CLSS) for the middle income group under Pradhan Mantri Awas Yojana (PMAY).

Sudhir Pai, CEO, Magicbricks is positive this will attract more developers and homebuyers towards the segment.

While mid-segment homes, priced at less than Rs 80 lakh, remains the largest segment by far, there has been a 10% quarter-on-quarter growth in the category of homes in the range of Rs 80-150 lakh, which translates to an more than 40% growth in the number of property seekers in this category from last year. This indicates a clear shift in consumer preferences towards the mid-level budget segment. However, growth in the luxury segment, which includes homes priced at Rs 1.5 crore and above, remains sluggish, with a marginal growth in the number of buyers from 52,000 to 54,000.


 

4. Thundering Thrust on Infrastructure continues in india

Narendra Modi, Prime Minister of India had once quoted during one of his speeches that cities in the past were built on riverbanks. They are now built along highways. But in the future, they will be built based on availability of optical fiber networks and next-generation infrastructure.

There is speculation going on in the market with some sources saying that the government might raise allocation for the infrastructure massively in the coming Budget. Finance Minister Arun Jaitley had said during the recent HT Leadership summit that tectonic shifts have taken place in the economy in the past one year and the government will now focus on infrastructure and the rural sector in the budget.

For measuring the growth trajectory of a country, infrastructure development is considered a key benchmark. The main focus is to create more job opportunities in the next one year and to boost the down trodden economy recovering from the onset and implementation of reforms. Sources informed, increased allocation to infrastructure will serve two-fold purposes - it will be able to create more job opportunities, also it will lead to boost development in the country which will help in strengthening the economy. The government will be announcing the construction of more airports, roads, ports and other infra projects in the 2018-19 Budget.

While it is said that the last budget was more focussed on sectors adversely affected by demonetisation, this budget should be able to stress on overall development, and to speed up progress.

While it is said that the last budget was more focussed on sectors adversely affected by demonetisation, this budget should be able to stress on overall development, and to speed up progress. With an aim to spur economic growth and job creation in the country, Niti Aayog had been pushing strongly for more infrastructure development. Besides a boost to road and rail connectivity, sources confirmed that the think tank panel had sought replicating the Chinese model of coastal economic zones to levergae cheap labour to enhance India’s share in global trade. Also on focus is the construction of more ports.

The government had recently announced the Bharatmala project under which 44 economic corridors will be created with thrust on job creation. Under the mega infrastructure development plan, about 14.2 crore man-days of jobs would be created. The government has already approved the biggest ever highway development plan to develop and expand approximately 83,000 km of roads at an investment of Rs 6.9 lakh crore by 2022 under the Bharatmala project.

"Cities in the past were built on riverbanks. They are now built along highways. But in the future, they will be built based on availability of optical fiber networks and next-generation infrastructure."

While it is said that the last budget was more focussed on sectors adversely affected by demonetisation, this budget should be able to stress on overall development, and to speed up progress. With an aim to spur economic growth and job creation in the country, Niti Aayog had been pushing strongly for more infrastructure development. Besides a boost to road and rail connectivity, sources confirmed that the think tank panel had sought replicating the Chinese model of coastal economic zones to levergae cheap labour to enhance India’s share in global trade. Also on focus is the construction of more ports.

The government had recently announced the Bharatmala project under which 44 economic corridors will be created with thrust on job creation. Under the mega infrastructure development plan, about 14.2 crore man-days of jobs would be created. The government has already approved the biggest ever highway development plan to develop and expand approximately 83,000 km of roads at an investment of Rs 6.9 lakh crore by 2022 under the Bharatmala project.


 

5. Growing ease of doing business in India

As per World Bank report, India has shown the highest jump in rank among all the countries this year. It has jumped 30 places to reach the 100th position in the World Bank's 'Doing Business Report 2017', released recently. "The Indian government has shown resolve in tackling difficult issues and its performance in the ease of doing business has been remarkable," said World Bank CEO, Kristalina Georgieva.

An improvement in the rankings will help not only foreign investments but also domestic investors. Various hiccups in doing business in India was a primary reason for many investors not to include India in their investment plans. Start-ups and domestic businessmen face issues related to delay, too many layers where the file moves, and corruption at various levels. Reforms were necessary for sure but the way few reforms were implemented by the government was not appreciated by the business community of India. At this point, the results of World Bank reports comes as a breather, though, in the domestic market, India is yet to see the positive changes reflect, specially in the mid and unorganised business spheres.

PM Modi called the jump in India’s ranking as historic and said it was a result of “all-round and multi-sectoral reform push.” As per reports, there is significant improvement in many criteria such as protecting minority investors, availability of credit, getting an electricity connection, taxation index etc.

PM Modi called the jump in India’s ranking as 'historic' and said it was a result of “all-round and multi-sectoral reform push.” As per reports, there is significant improvement in many criteria such as protecting minority investors, availability of credit, getting an electricity connection, taxation index etc. The impact of the GST is not factored in the ranking since the cut-off date June 1, 2017.

“An improvement in the rankings will help not only foreign investments but also domestic investors.”

India is among the top ten improvers this year, with improved ranking in six of the ten indicators, while its performance in absolute terms improved in nine. We feel good to know that the six areas of improved ranking include dealing with construction permits and enforcing contracts.

It is interesting to note that Bhutan is in 75th place. It is South Asia’s highest-ranked economy, followed by India at 100 and Nepal at 105. This year, the report recognised eight areas in which reforms were implemented in Delhi and Mumbai, as opposed to just four last year.

Though rankings have improved, India still lags in areas such as starting a business, enforcing contracts and dealing with construction permits. “Tackling these challenging reforms will be key to India sustaining the momentum towards a higher ranking,” Junaid Ahmad, Country Director World Bank said.


 

6. Huge Rural Development on the cards in budget 2018-19

India is more in rural than in urban. People are not yet aware how much opportunities lie in rural transformation. Just as Affordable Housing is shedding its old tag of being 'down market', rural development will also come out as lucrative option, in the time to come. Major thrust is on housing development and improving rural infrastructure, roads, connectivity, power, jobs, opportunities, etc.

The last budget promised 100% village electrification by May, 2018 and an investment of 5.5 billion dollars has been made to provide affordable housing to more than 100,000 homeless and to those who reside in 'kaccha' houses. The budget had also allocated a sum of Rs 19,000 crores in 2017-18 for the Pradhan Mantri Gram Sadak Yojana (PMGSY), which is also expected to give rise to rural employment. Almost as a strategic preamble to the same, the government also aimed to provide mason training to 5 lakh rural residents by 2022. Also, open defecation free villages were given priority for water supply pipeines.

“With better connectivity, power, internet, and rural infra development, we are foreseeing the revival of many art & craft forms in the rural areas which were abandoned due to people moving out for towns & cities, and not finding enough takers. Designers are most eligible to start such entrepreneurship ventures since understanding & respecting art will be at the core of such venture.”

Post budget, critics pointed out that focusing on tertiary industries would have provided financial security and employment to rural women and preserved traditional handicraft. The budget could also have emphasised on providing direct market linkages to consumers, in a bid to reduce the hindrance of middlemen. For village electrification drive, the renewable industry sector, especially the solar and wind energy sectors could have been brought in. In 2018-19 Budget, the above points might well be considered.

So, what does the impetus on rural development means for the building material and design industry? With better connectivity, power, internet, and rural infra development, we are foreseeing the revival of many art & craft forms in the rural areas which were abandoned due to people moving out for towns & cities, and not finding enough takers.

So, what does the impetus on rural development means for the building material and design industry? With better connectivity, power, internet, and rural infra development, we are foreseeing the revival of many art & craft forms in the rural areas which were abandoned due to people moving out for towns & cities, and not finding enough takers. Though the flow from villages to towns & cities will continue, yet we are seeing birth of many 'Made in India' brands which will depend on rural economy while operating from metropolis. Enterprising people even in rural setup who would find it lucrative and meaningful to earn a fine living. Designers are most eligible to start such entrepreneurship ventures and make it big in the time to come. I have read about many Italian designer brands that started and flourished in the same way ages back.


 

7. Hold on to Heritage, dear Designers & Architects of India

A decade back, we wanted to shed everything Indian and adopt contemporary styles. And why not? Mosy of India has been living in a colonial hangover, quite uncomfortable with the idea of Indianness. Quality and luxury used to be the purview of imports. As children we waited for our their relatives’ returning from abroad to get chocolates, perfumes, or imported clothes for us. Times have drastically changed. As per a survey, today, 60% of Indians are willing to pay extra for products that are made in India.

Global exposure has exposed designers to the relentless appreciation of indegineous art & craft. Many have returned to start prolific designs studios based on Indian heritage. Some of the names are Raseel Gujral, Goodearth, and even some very young designers like Parth Parikh of Design Clinic are going international with their Indian collection. Recently, I spoted one of his designs at the Dubai Design Show.

Ease of Doing business in India

Recently during the annual lecture in Royal Academy, the 90 year old doyen of Indian architecture, Prof. B V Doshi expressed anguish on the fact that country's architects are too concerned with mimicking the aesthetics and practices of other countries, rather than learning from the legacy of their predecessors. He said, "This is the reason, why so many faceless skyscrapers are being built in India. India is at risk of losing its architectural identity, because the country's design schools aren't teaching students to respect local heritage and traditions. It is because of the desire to become like somebody else. Education is at the base of all these mistakes; we are not making students conscious of the value of things."

People are becoming more and more proud of being Indian which reflects in their choices and the products they buy and the dresses they wear. Look at the advertisements of Manyavar endorsed by ace cricketer Virat Kohli. Aren't they such a contrast from what we have seen and grown up with, like the ads of Vimal, Raymond etc? Things are changing and as designers and architects of the country, it is time that you change too and embrace heritage. While one can have any style of designing, holding on to the heritage is important to hold on to our identities. The alleniation from our own heritage is quite deeply ingrained in many of us. If nothing still inspires you to get back to the roots, I would not give up but end with this final sentence, "CUSTOMERS ARE GOING BACK TO HERITAGE. DESIGNERS, IT'S TIME, YOU SHOULD TOO."


 

8. Internet of Things (IoT) to revolutionize building & design

Sooner than later, IoT (Internet of Things) is going to be a significant part of the way we live our lives. People today are able to control remote appliances with just the tap of a touch screen. According to a report published by Deloitte, the current number of IoT devices in India is around 60 million and the number will increase to 1.9 billion units by 2020. Furthermore, the IoT market in India is expected to be $15 billion by 2020, accounting for 5% of the global market, indicates a NASSCOM report.

"IoT is being used for Construction management, and intelligent Building information modelling in Green buildings to shut down unnecessary systems or open and close louvers automatically, also used for creating intelligent prefab buildings and limiting construction waste. The use is growing."

Just imagine how much our life and lifestyles are going to be revolved around IoT! To me, getting heavily dependent on technology seems scary. However, in this article, I am focusing on the good it is doing for the building and construction industry.

Recently, Jacqui Levy in her blog for IBM wrote about the various ways in which IOT is impacting design and construction, such as use of IOT for intelligent Building information modelling or BIM, in Green buildings where IoT devices are engineered to do things like shut down unnecessary systems automatically when the building is unoccupied, or open and close louvers automatically to let in optimal levels of natural light

Recently, Jacqui Levy in her blog for IBM wrote about the various ways in which IOT is impacting design and construction, such as use of IOT for intelligent Building information modelling or BIM, in Green buildings where IoT devices are engineered to do things like shut down unnecessary systems automatically when the building is unoccupied, or open and close louvers automatically to let in optimal levels of natural light. It is being used for creating intelligent prefab buildings and limiting construction waste. Construction management is another area where IoT is helping. For example, Heavy construction equipment is being outfitted with sensors, which can be remotely monitored for key indicators of potential maintenance issues like temperature fluctuations, excessive vibrations, etc.

"India is at risk of losing its architectural identity, because the country's design schools aren't teaching students to respect local heritage and traditions. This is the reason, why so many faceless skyscrapers are being built in India. It is because of the desire to become like somebody else," says Prof. B V Doshi"

Infact, IoT is slowly steadily penetrating every area of our living in the future such as surveillance, automated transportation, energy management, managing inventories, intelligent shopping systems, biological sensors that could use cloud-based analyses to allow users to study DNA or other molecules, monitoring and operation of urban
and rural infrastructures like bridges, railway tracks, on and off shore wind farms is a key application of IoT. As the Oxford online dictionary mentions, “If one thing can prevent the Internet of Things from transforming the way we live and work, it will be a breakdown in security.”


 

9. Renewed focus on Women Led Business

This year was remarkable in terms of the steam generated for Women Entrepreneurship and we see that it will only grow from here. India got its first ever Women Defence Minister Hon. Smt. Nirmala Sitaraman. Shubhangi Swaroop, from Bareilly in Uttar Pradesh created history by becoming the Navy’s first woman pilot. The milestone was praised by the Government as representative of the quantum leaps in women's rights the country is making. The amazing Women-led team of scientists in ISRO is another feather in our cap amongst several others.

“Women-led development is being seen in every field be it design, science, technology, communication, arts, environmental and more. What more can acknowledge the fact about renewed focus than the recent world GES (Global Entrepreneur Summit) which had the theme of ‘Women First, Prosperity for All’.”

As one of the Key invitees at the Summit, Ivanka Trump observed “This is the first time that women make up the majority of the 1,500 entrepreneurs selected to attend the event. From doctors, scientists to engineers and architects, Indians are ahead, be it discovering life-saving technologies and building modern wonders, to reaching the Moon and Mars.” Ivanka also highlighted how technology is a great driver to promote women entrepreneurs as it reduces barriers to starting businesses and offers tremendous opportunities.

WADe Asia (World Women Architects Artists and Designers – Asia) which recently celebrated its second edition in October this year was a grand success with participation from across India and representation from five other South East Asian countries. It brought together Women leaders from Architecture, Design, Art together in a common platform and was lauded by all.

WADe Asia (World Women Architects Artists and Designers – Asia) which recently celebrated its second edition in October this year was a grand success with participation from across India and representation from five other South East Asian countries. It brought together Women leaders from Architecture, Design, Art together in a common platform and was lauded by all.

It is good to see renewed focus on women-led businesses. Various schemes have been launched to promote and support entrepreneurship among women and getting loans easier. In December 2017, Maharashtra became the first State to have a policy for women entrepreneurs. Under the policy, a woman entrepreneur will get financial assistance from Rs.15 lakh up to Rs.1 crore in proportion of 15% to 35% of the capital investment of the project at a subsidized rate of interest of up to 5%. At the same time, the projects will get electricity at subsidized rate of Rs. 1-2 per unit instead of Rs. 7-8 per unit.


 

10. Real estate Round-up 2017 india

For a round-up on real estate, www.surfacesreporter.com the online wing of Surfaces Reporter magazine India has collated the opinion of various stakeholders of the Indian real estate industry who have shared what they are looking for in 2018.

Niranjan Hiranandani

President, National Real Estate Development Council (NAREDCO)
which works under the aegis of Ministry of Housing & Urban Poverty Alleviation, Government of India:

“While the year started with demonetization the impact continued almost till April 2017. Then we had the Benami Properties Act, followed by RERA and GST – and then, the amendment made to the Bankruptcy and Insolvency Code, 2017 was largely a year of slow market; sluggish sales and a ‘wait and watch’ attitude on part of home seekers.

Interestingly, commercial RE performed very well across 2017. To give our own example, we began 2017 by completing Hiranandani Signature, a 16 storey commercial tower with 4 lakh sq. ft. of office space in Gujarat’s GIFT City; similarly towards end-2017, we completed TCS Olympus Centre, 2 million square feet of ‘built to suit’ office space in Hiranandani Estate, Thane.

Interestingly, commercial RE performed very well across 2017. To give our own example, we began 2017 by completing Hiranandani Signature, a 16 storey commercial tower with 4 lakh sq. ft. of office space in Gujarat’s GIFT City; similarly towards end-2017, we completed TCS Olympus Centre, 2 million square feet of ‘built to suit’ office space in Hiranandani Estate, Thane. In Panvel, we have arguably the single largest commercial spaces cluster in the MMR already developed and are ready for possession. For commercial realty, in 2017 it has done good, should do better in 2018.

In wake of the disruptive events over 2016-2017, Affordable Housing has emerged as the driver of real estate growth. Talking about these radical changes it has surely brought in much required transparency, trust, customer safety mechanism and accountability into the place. To sum up in a nutshell, future of Indian RE looks very bullish and it shall grow at the CAGR of 5%-6%. It will be a leading contributor for perennial job creation and economic growth of the country. Mega infrastructure framework will redefine the reality of Indian Real Estate growth story.”

"Future of Indian RE looks very bullish and it shall grow at the CAGR of 5%-6%. It will be a leading contributor for perennial job creation and economic growth of the country. Mega infrastructure framework will redefine the reality of Indian Real Estate growth story," says Niranjan Hiranandani

 

Gaurav Mittal, MD, CHD Developers Ltd:

“With the overall market moving towards ease of doing business, we can expect potential buyers (end users) to relook at the market for investment opportunities. 2018 will be the year of affordable housing.”

 

Harinder Dhillon, VP- Sales, DLF:

The year 2017 can be regarded as a watershed year for the real estate sector. Forthcoming year is the perfect time to invest in real estate sector as these legislations have heralded transparency and accountability into the sector. Home loan rates, too are at an all-time low and are expected to remain low in the near future as well. This implies considerable savings in the EMI costs that will enable homebuyer’s to avail low-cost home finance and fulfill their dream of owning a home.”

 

Rahul Singla, Director, Mapsko Group:

The year 2017 has been good for the real estate fraternity: with this, 2018 is going to be the best time to invest in this sector. The developers will take active interest and buyers will have huge range of properties to choose from and purchase. Ready to move-in-apartments is going to earn extra interest from the buyers as these save the construction timing and are the best option for them.”

 

Pankaj Bansal, Director, M3M Group:

“With improved ease of doing business rankings, enhanced political stability & economy expected to regain its momentum, the overall investment climate in India is expected to substantially improve in 2018. Interest rates have already moderated and are expected to come down further making the cost of borrowing cheaper for buyers as well as developers. Given all these factors, we believe the outlook for Real Estate for the year 2018 is positive and it will be a good time to invest in real estate.”

 

Sumit Berry, Managing Director, BDI Group:

“One crore houses are to be built in rural India by 2019, and this vital segment will now see cheaper sources of finance which will give further boost to the sector. The country’s real estate markets are definitely poised for growth in the medium-to-long term on the back of higher transparency and further consolidation. The demonetization move showed considerable beneficial; however, along with the Benami Transactions Act, it proved to be profitable to the entire."

 

Vineet Relia, Managing Director, SARE Homes:

“The reduction in circle rates, twice this year has led to lowering of the costs which would boost the sector in the coming year. However, the realty market is recovering gradually post implementation of RERA and GST. Most of the developers will focus on completing their under construction projects. Moreover, there is need for more clarity on GST leading to better transparency in the sector.”

 

Vineet Taing, President, Vatika Business Centre:

“2017 has been a landmark year both for the Indian Economy and the Indian Real Estate. Policies have ushered in transparency and stroked confidence among buyers. Talking specifically about the Commercial Realty segment, co-working spaces and business centres have become the preferred choice. Another interesting industry trend observed is office occupiers in Gurgaon are pre-committing office spaces in under-construction especially in central business districts of Gurgaon to secure themselves against high or rising future rentals.”

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