What can we expect from the property market in the upcoming year 2018
The year 2017 has been proven very positive for the property market in India. The field has experienced many affirmative steps taken by the government and the Reserve Bank of India such as cut off in the interest rates and implementation of Real Estate Regulation Bill. The experts of the sector are predicting the further upliftment of the market.
We all know that the year 2017 was not a good year for Indian property market and there was no significant increase in the transactions and remarkable property deals. With the change in the leadership of the central government, there was some sentimental revival; also the government presented some promising short term and long term measures to give a new boost to the market. Though the announcements were very optimistic and the market was hoping for hand to hand.
With the start of the year 2017, the difference could be easily observed. The mood of buyers changed and the pace of the market also changed in an optimistic manner. With the increase in the economic activities, and the income level of the service class and middle-class people, the industry can expect some great developments in the market And now the market trends are presenting the picture of a bright and prosperous future for this real estate sector.
Here are the latest expected property trends that are going to change the overall scenario:
Expected Property Trend For 2018
“End user” is the key factor
As per the latest trends, the market is in the stable hands of the end users. For a long time, it was driven by the speculators and investors that caused a continuous season of ups and downs. Today the buyers are investing in the property, not for short-term investments, but for family requirements, for permanent residential needs (as they were living on rent) or for long-term investment. This trend is expected to continue and will cause more stability in the market.
For the last couple of the months, the property prices are floating with calm stability. This mood is predicted to be for some upcoming months also. As per the survey held among the potential buyers, about to 49% of them are advocating the price stability, yet 20% feel that the prices should be or will be increased by a little margin and the rest believe that prices should go down.
Location is more considerable than the price
The present-day property buying decisions are mainly influenced by the location factor rather than by its price and other relevant ones. The location means by the connectivity or the proximity of the property to the basic amenities such as hospitals, market, education centers, offices or the highways. The survey indicates that about 62% potential buyers will prefer the location, 22% will see the price and the rest will consider the size of the property as the main element of making any property purchase decision. No doubt, that in the recent future, the customers will have a great variety of property options in the terms of price, location, and size.
Majority of affordable and mid-segment housing projects
The largest number of property buyers is expected to come from the affordable class i.e. from 0-40 Lakhs. The survey indicates them in the 49%. In the remaining share is divided in 29% of the mid segment (40 Lakhs to I Crore),17% of high-end housing (1 Crore to 1.8 Crore) and the remaining 8% will look for a luxury housing (more than 2 Crore). Among all these options, the apartment is the most preferred choice. This is mainly because of the shortage of land and the higher prices have made it far possible for the people to buy the villas or bungalows in the metro or the tier II cities. The apartments also have many included facilities such as security, clubhouses, community living and many other support facilities. Studio apartments or the service apartments are also will be in demand in the future, but the number will be not very significant.
Some Challenges Of Property Market in 2018
Though there are many positive factors that are presenting an optimistic scenario of the future property market, there are also some challenges or the hindrances that can cause some interruption in the speed of success of the property market. The main of them are:
In India, a large number of middle class is living its life in the rented houses and apartments just because the property prices are much higher than its limits. The governmental efforts are very promising and welcoming as the interest rate on housing loans has been reduced and also there are many reforms to take place very soon, yet this is not sufficient. The higher rates of EMIs also m make the people less interested in buying the property.
People prefer the location with better connectivity while buying their dream property, but most of the ongoing and projected housing projects are situated on the outskirts of the cities where the basic m and the connectivity standard is yet to be developed. This discourages the people to buy the new property.
In the recent past, many projects are running with a delay. There are many reasons such as lack of funds or the land acquisition issues. This condition makes the buyer away from playing the active role in the property market. They lost their faith in the builders, their projects, and the market.
These forecasts are the future prediction of the desires, aspiration and the fear of the property market as well as the buyers. While the government is well set to develop 100 tier II cities as the smart cities, the spectrum of real estate and property market is very optimistic.
The builders and the real estate agents can manage to overcome the shortcomings of their projects and the working manner, they can expect a great time of the industry ahead. The industry experts are also expecting other industrial and governmental efforts to boost the market.