By Ravindra Pai, Managing Director, Century Real Estate
Since 2019 is an election year for the country, the sentiments in the real estate sector will be muted. With the implementation of macroeconomic reforms like RERA and GST, the sector is getting more organized with consolidation being the new buzzword/key. This trend is likely to continue in 2019 as distressed projects and smaller players are getting absorbed by larger developers. Smaller developers who are debt-ridden will be looking at consolidating themselves through joint development or joint ventures with large developers.
The government’s push towards promoting affordable housing has made the larger players drive the growth organically in that direction. Expansion in the affordable housing segment will continue to be the focus for many noted names in the business in 2019 to address the huge demand in that segment. With the recent growth in warehousing space, the demand for this asset class will also continue.
With the recent liquidity crunch in the sector as evident from the severe liquidity crisis of Non-Banking Financial Companies (NBFCs), developers will now start focusing more on the completion and selling of projects rather than just raising finance and/or refinancing projects. Verticalization of the sector is also expected with developers focusing more on domain expertise like luxury, affordable and/or commercial.
We can also expect more home-buyers to opt for flexible space-saving furniture while deciding to invest in a property.