March 7th, 2020
With RERA getting constitutional validation, 2020 might prove to be the year when the common man breathes a sigh of relief. Before the RERA act, buyers had no redressal and were stuck with investments where builders were unable to complete projects for various reasons. This purposefully makes sure that projects are not delayed or abandoned altogether. If the builder is unable to complete the project within the timeline, they are liable to be penalised. RERA has therefore become a platform for discovery, due-diligence and redressal. This will bring trust, transparency and help fast-track judgements for the hapless buyer. The law will apply to projects measuring more than 500 sq.m. or having more than eight apartments.
The concept of real estate is itself evolving over the years. Apart from government’s effort to clean the sector, many new formats are being tested by the market. Some of them involve buying units of real estate reserves, others propel the rise of flexible work.
Purpose built Student Housing
The demand for shared student housing has already outstripped supply. According to a research with over 50% of the population migrating to cities by 2035, and with world-class universities clustered around cities, the need for student housing will become a priority. Government’s “Study In India” program to persuade kids out of school to pursue higher education will make the sector more appealing in the coming years.
The Rise of Co-working
The concept of flexible work environment and cost-effective spaces has giving rise to the brilliant idea of sharing of work spaces. With major corporates going asset light and with the economics of cost-cutting setting in, this format looks very attractive in the long run. Not only in cities, the concept will expand to Tier-II and Tier-III cities as the expectations of professionals & executives rise.
Communal sharing be it a home or while on travel, is becoming a concept that is driving millennials into the future. Like shared stays, the residents of co-living enjoy common lounges, recreational centres, meeting rooms but with a private quarter unlike hostels. A thriving start-up culture and a great option for frequent travellers without tying them to an address, this concept stands on a solid foundation.
Real Estate Trust Funds
Own a piece of land without physically owning it. This one takes the sting out of owning or maintaining a property. Yes, with global investments pouring into emerging markets like India, the concept of owning a property as investment will see a dramatic shift. With two among major corporates entering into the market with REITs, you can buy a residential or commercial property without having to flex a muscle.
The thought of buying a property sitting at home seems outlandish at present. With progressive technology introductions, virtual reality and artificial intelligence will change the way we buy. We might over the years see the rise of multiple channel retailing with virtual reality playing a key-role in delivering an experience that mimics real-life. Get ready to travel virtually, take a VR property tour or for that matter pick grocery from your neighbour store without stepping out of home.
The future is exciting. The buyer as always will be one who will benefit the most. Presently, many developers are bringing tech-enabled homes and offices that you can explore. Don’t forget to start investing in a property while you are young from your nest egg as the power of compounding will work in your favour. Here’s wishing you good luck in your quest for a property that secures your future and lets your family live securely. Happy house hunting.