Real Estate market forecast 2020
With the beginning of new decade, confidence returns to real estate. It seems that the industry will face a number of fundamental shifts, which will shape its future.
As we have already entered in the year 2020, a new decade has begun. If you have known the scenario of real estate over the past year, you’ve likely experienced some good or some bad.
Government Initiatives
By introducing massive changes in the taxation and regulatory aspect of real estate, the government has played a crucial role in facilitating the growth of the real estate sector. The setting up of RERA ensured a lot of transparency in real estate dealings. Also, credible developers alone will be able to survive in the industry. Today, Government initiatives like Pradhan Mantri Awas Yojna have helped many to invest in the real estate sector at an affordable cost. And not to forget, many other important government initiatives including Atal Mission for Rejuvenation and Urban Transformation (AMRUT), Swachh Bharat (Urban) Mission, Ministry of Housing and Urban Affairs (MoHUA).
But what will 2020 bring? More of the same or we will see some of the new trends. Some experts predicted certain things across commercial and residential real estate, interest rates, and even what governments and private sector companies could do this year to impact the affordability crisis.
Real estate market predictions
Demand for real estate in India will always be tremendous. According to forecast, home prices are expected to flatten, high employment, a mixture of economic growth and low-interest rates must drive demand. The real estate sector is expected to reach up to $180 billion by the year 2020. Not only residential but also commercial real estate is gaining importance. The worldwide stock of institutional-grade real estate will expand by more than 55% from US$29.0 trillion in 2012 to US$45.3 trillion in 2020. It may then grow further up to US$ 69.0 trillion in 2030.
Here are the three major predictions for 2020
1) The global investable real estate will expand substantially
World population growth and increasing GDP per capita will propel real estate expansion. By 2020, it is expected to rise by more than 55%, as per PwC forecasts and then will expand by a similar proportion in the following decade.
2) Cities will range wider opportunities
Fast-growing cities will present a wider range of risk and return opportunities, ranging from low risk in advanced economy core real estate to high risk-reward in emerging economies. The greatest social migration of all time, mainly in emerging economies, will drive the biggest ever construction surge.
3) Technology innovation and sustainability will be the primary drivers for value
Every building that will be constructed needs to be sustainable in the broadest sense, offering their residents with pleasant places to live. Technology will interrupt real estate economics, making some kind of real estate innovations.
Looking forward to the real estate industry in 2020 and beyond, it will find itself at the center of rapid social and economic change, which is converting the built environment. In 2020, it is assumed that the real estate managers will have a wider range of opportunities, with some greater risks and new value drivers. As we all know, real estate is a business with long development cycles, right from planning to construction it takes several years, now is the actual time to plan for these changes.
Disclaimer: The views expressed above are for informational purposes only based on industry reports and related news stories. Propertypistol does not guarantee the accuracy, completeness, or reliability of the information and shall not be held responsible for any action taken based on the published information.
