Real Estate Industry in 2019

Madhusudhan G., CMD, Sumadhura Group

Post the revival of the Indian real estate sector through a series of initiatives by the government, the confidence of the homebuyers has increased with a clear understanding of the market. The developers have also witnessed a smooth regulatory business process. This development is expected to help increase the cash flow in Indian real estate sector in 2019. Single window approvals by central and various state governments will further accelerate growth of the industry.

Commercial real estate to boom: There will be a huge scope for the commercial real estate due to the increasing number of grade-A office spaces for start-ups, co-working places and e-commerce. IT parks in terms of location and amenities will emerge as an exemplary trend for commercial real estate growth. Rentals in commercial realty will catalyse growth as investors tend to rent a commercial space rather than buying it. Also, the increase in educational institutions in metro cities will drive student housing, which is a huge unmet demand in the country.

Warehousing to get major boost: Another rising sector is organised warehousing, which has seen a sharp increase in demand due to advancements in e-commerce. Now, with the liberalization of FDI policy, demand for warehousing is expected to escalate even more. The electronic and white goods segment is another key driver, as the need for substantial warehouses in urban and semi-urban areas will increase. According to an industry report, India is set to witness investments close to ₹50,000cr for creation of warehousing facilities across the country between 2018 and 2020.

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