Some call it market intelligence and not due diligence where the focus should be more on the micro markets than general trends which could be misleading. However, there are many grey areas where in the absence of proper research and reliable data even the assessment of ground realities is not feasible.
The real estate sector is in dire need to communicate an connect with the stakeholders and society at large. In the name of communication all that they do is to hire a PR (Public Relations) agency for the purpose of brand building but do not understand what is communication in the right context.
Track2Realty lists down the assessment by Colliers International that will drive the Asia property market in 2018. Here are the Top trends that is expected to be in the headlines.
Swadeep Sharma was on a house hunt in Noida for the last two years. Last year he could find a house of choice at one of the newly delivered projects in Noida Expressway at INR 5600 per sq feet. He could, however, not manage his finances then. Now that he has managed his finances, he went to the same location anticipating shelling out more money. He was, however, taken by surprise. The apartment in the same society is today available at INR 4800 per sq feet.
In real estate, market dynamics is so more complex that all the marketing theories and economic rationale have already gone for the toss. The conventional financial definitions are often challenged by the imbalance of demand & supply. With real estate predominantly being a micro market business, each market has its own dynamics.
What would hurt both the buyers as well as the builders is the fact that the property buying and selling would continue to be at standstill. The job market is not picking in any given industry and it would hurt the overall business.
The new regulatory regime is largely about steps, which include streamlining approval processes, simplifying taxation (GST), building institutional capacity, as also introducing urban planning and real estate-related reforms (RERA and REITs).
A year back at the end of 2016, the doom mongers were out in force. In our office sector there were those who were predicting a slump in demand, uncertainty around the new Government in the US, the scare stories around automation and AI, the performance of the top 5 Indian ITeS companies, exaggerations around layoffs and even the dramas of corporate Boards of great Indian technology companies.
The more liberalized FDI regime now further attracting global capital flow to Indian real estate sector. The Goods and Services Tax (GST) system will also have a major impact especially in sell to build model in Real Estate. And the Benami Property Act will surely curb the parking of black money in real estate.
The year 2017 turned out to be a landmark year for the economy at large and the real estate sector in particular. Several historic reforms and policies were rolled out. Beginning with the Union Budget, the affordable housing received a huge impetus in the form of infrastructure status.