Emerging Real Estate Trends in 2020By
Akhila Masapogu, 07-Jan-2020
As we begin with 2020, the Indian Real Estate sector is taken over with emerging trends and innovative modules. With the impact of global trends in the Real Estate market, the landscape Indian Real Estate is actively changing. These trends of Real Estate will strengthen the sector and play a prominent role in the development of the Indian economy. The government’s initiatives, reforms, and measures are all updating and are being formulated to support the upcoming and emerging trends of the Real Estate.
These are a few trends that Real Estate will be witnessing this 2020:
Coliving is the most trending sector of the Real Estate sector is about to hit 12 billion USD this year. Co-living is a millennial concept of community living with modern amenities, regular communal events, and hassle-free living. The failure of traditional student housing in providing basic amenities such as proper ventilation, privacy, and spacious rooms, has paved a way for the development of Co-Living. More than 70% of the Millenials prefer Co-living, this number is to increase further in leaps and bounds and is expected to alter the landscape of the Indian Real Estate sector.
Co-working spaces are shared working palaces where different people from different working backgrounds share space under one roof. 2020 is to witness increased demand for shared spaces that may be Co-working or Co-living. Co-working spaces are booming business modules that are offering affordable office spaces to freelancers, small teams and start up’s. Co-working spaces offer everything that one requires to work efficiently from shared desks, wifi, comfy chairs, refreshing coffee to dedicated desks, huge conference rooms and private office spaces. Varying on the privacy and comfort of these amenities their costs vary too. Co-working places are very flexible and allow the individuals to rent out exactly what they need only, may it a shared desk or a private office, the user gets to pay only what he actually uses. Currently, the Co-working spaces which occupy 10% of the office space in India are expected to reach 25% in the near future significantly impacting the Real Estate sector.
With it’s first REIT launch by embassy group recently, the Indian government has been promoting investments in REIT’s rigorously. 2020 is going to see some other REIT’s budding in the Real Estate sector. The holding period for a unit of REIT to be long term is to be brought down from 36 to 12 months by the government for giving a further boost to the sector. The union budget of 2020 is also expected to declare some major reforms, suitable taxations, etc to further encourage investing in REIT’S. With RERA in the form on credible deals of the Real Estate is going be seen in action. RERA is going to be in action full-fledged, with a solid structure and stricter rules in 2020.
Fractional ownership module of the Real Estate allows several people to share the costs of a property and thus own a certain fraction of the property. It is quite similar to the Reit’s module but differs majorly in the transactional procedure. Fractional ownership is backed with a secure blockchain module that allows the investors to experience a digitally secure transactional procedure. Fractional ownership concept is trending in many metropolitan cities, with multiple startups’ promoting the concept. This module of Real Estate is increasing at a faster pace owing to its affordability and security, which will increase further in 2020.
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With the advent of technology and E-commerce, the warehousing segment has experienced a huge demand. There is a dire need for quality warehousing for catering to the needs of global and local players across the different sectors. The warehousing segment which was previously dominated largely by the unorganized sector, now with the interference of the large players is to be strengthened. With the regulatory compliance in place and government initiatives streamlining the segment the warehousing sector is going to pick the pace in 2020. This sector is also expected to experience the venturing of many global and credible local players as well. 2020 will experience a more consolidated and efficient warehousing market.
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