Policy Changes & Ambitious Development Plans Taking Shape In Indian Real Estate
Investor sentiment in a few emerging markets, including India and Indonesia, remains cautious as investors gauge the recent or expected policy changes. However, these changes and the ambitious development plans taking shape in the Indian real estate market will be the key engine of opportunity in 2018 and beyond, says Colliers Research.
In line with Q3 2017, the last quarter of the year (Q4 2017) witnessed all stakeholders trying to align their activities with the new market structure resulting from the implementation of the Real Estate Regulatory Act (RERA), Goods and Services Tax (GST) and demonetisation.
With new supply likely to be restricted in 2018, the rise in housing demand and sales would lead to a reduction in unsold stock. The residential market is likely to see a major consolidation as many developers are expected to sell their assets to complete ongoing projects and cut debt.
The residential space also gained traction, especially across the affordable housing space, driven by government’s push to promote the category to achieve its ‘Housing for All by 2022’ mission. Additionally, the last mile funding for near completion projects continues to be the flavour of the market as developers look to ensure timely project deliveries to avoid penalties.
The residential sector is expected to make a comeback as retail investors look to re-enter the market, while pre-leased investment grade office and retail space will continue to dominate investments.
Apart from this, the platform level transactions are expected to re-emerge as international developers and funds are increasingly looking to collaborate with reputable domestic names with development expertise and delivery track record.
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