Affordable Housing To Grow In 2018
Affordable housing is the talk of the town and we will definitely see maximum investment in this segment in 2018
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Looking back at the year 2017, the real estate industry was swept over by a wave of change brought in by the advent of GST and RERA. However, the sector experienced a significant boost, during the latter part of the year.
Affordable housing was definitely trending in 2017, and companies who rode on the trend saw fruitful returns, while enjoying increased sales during the second half of the year. In fact, the western suburbs experienced comparatively higher sales than South Mumbai. The year 2018 will continue to see a growth in sales in the affordable housing sector. Most of the developers, us included, are focussing majorly on affordable segment.
The grand vision of Prime Minister Narendra Modi of ‘housing for all by 2022’ will also gain momentum in 2018, with major players investing in the affordable housing sector. With schemes like the Pradhan Mantri Awas Yojna (PMAY) and other initiatives for lower interest rates on home loans have gained buyers confidence. Additionally, developers are passing off the benefits of GST and other such schemes directly to the buyers, with the aim of attracting more business. As such, in 2018, buyers can look forward to much better rates and offers, while making an investment.
On the other hand, the luxury market, which was earlier an investor-friendly space, has now become a high-risk zone. Investors used to pump a lot of money into the luxury segment, as properties would get sold soon after completion. Nowadays, buyers are constantly looking for ‘something different” while buying luxury properties. The focus on privacy and security, along with modern facilities and amenities has resulted in affordability being a major factor of concern. As a result, buyers aren’t investing as much in luxury segment, hence there is lot of ready-to-move-in inventory in the market, due to which there is lull in new launches and focus is on selling existing inventories.
Affordable housing is the talk of the town and we will definitely see maximum investment in this segment in 2018. We have seen several cases where customers who have purchased a 3-4 BHK apartment are left with no other resort but to liquidate them when they are in need of funds. Affordable housing brings with it a solution to this problem, by creating a market of smaller flats, which can be sold one at a time, thus keeping your investment intact.
Real estate investments in 2018 will also be driven by amenities in project, location, close proximity to recreational areas, schools, hospitals, public transport, and most importantly, value for money. I see the demand moving further North, into suburbs beyond Andheri in Mumbai, for instance, becoming prime locations for real estate investments.
As a buyer, making the right investment is a crucial choice, and factors such as infrastructure, amenities, and value-for-money should definitely be considered, as well as incentives such as fully furnished apartments, before finalising the deal!
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