After a slump in the real estat sector in 2017, it is going to be a bumper year for the market in 2018. 2016-2017 saw a few policy changes which include demonetization, GST, implementation of RERA and REITs. These are the trends that have been observed in the Indian real estate.

Global flow of capital will increase: According to the World Investment Report, the FDIs in India will increase. India has been ranked fourth for FDI inflows for development and trade. There are high expectations from private equity. India’s real estate has attracted USD 32 billion in private equity until now. NRIs find the real estate market highly reliable in the country.

Developers will revamp the business model: In 2016, developers launched a number of projects and there was no guarantee of completion of them. However, with RERA, a deadline has been given for these projects to be completed and it will force the developers to improve their business model. This will bring more transparency and accountability in the system. It has also led to an increase in consumer confidence. The GST will also have a strong impact on how developers run their business.

Rise in co-working culture: There is a global rise in co-working culture and startups are opting for flexible working spaces at affordable rates. Companies that have limited space requirement are now leasing out their office space and giving rise to hybrid spaces. This trend will continue throughout the year.

Affordable housing segment: More than one crore houses are to be built in India by 2019 with cheaper sources of finance. This will help the growth of the sector and home buyers will be able to invest in their own homes. They have been given the criteria for affordable housing where the carpet areas have changed from 30 square meters to 60 square meters.

Industry Consolidation: There is an increase in developers and projects but lack of customers which has led to the merger of different developers. There will be more joint ventures in the sector this year. It will attract new investors as the price earnings ratio will improve.

Change in preferences: This year will see an increased demand for 2 BHK and 3BHK segment. There will be preference towards ready to move in properties that are hassle free of compliance issues.

People are now moving towards investing into small scale as well. It is a tried and tested means of building wealth in the long term. 2018 looks promising for a good supply of houses across the market.