The year 2019 has been a significant one for the real estate sector in terms of the market attaining a maturity that promises a long tenure of stability. With the completion of long stuck infrastructural developments and the reformative policies by the government promoting a positive sentiment in the market, the sector is streamlined towards a year of steady growth ahead. As the year ends, real estate developers share their views on how the real estate sector will perform in 2020.
“Compared to other industries and regions, Gurugram Real Estate Market is less affected by the slowdown as customers continue to make informed decisions, buying products of performing or reputed, new-age developers. On average, presently, about a million square feet of inventory is sold in Gurugram on a monthly basis by such new-age developers. In 2020, this trend of consolidation of sales may translate further into the consolidation of business by such new-age developers. Conversely, we believe that steps recently taken by the government to resolve the liquidity crisis will facilitate economic growth, leading to better GDP Growth Numbers including that of consumption and sales. Therefore, the real estate industry should do better in 2020 than the year gone by,” said Pankaj Bansal, Director, M3M Group.
“The business center market has been mushrooming since 2014. Wherein established and only realistic businesses stayed in the market during the last year and a good few perished due to their myopic vision and unfair business practices. The indigenous business centers and co-working spaces who focused on their real-time business have continued to outperform. The key was not just to provide seats, but also to impart constant technological upgrades, having personalized connect with the clients, ensuring premium quality highly-secured workspaces in good locations with clean air and with proper play zones for relaxation. Besides, business support services such as taxation services, registration & legal compliance support, concierge, IT, HR, marketing services and live-cooking cafeteria are among few such services which invariably have become critical in making any business center a one-stop-destination. The year 2020 seems to start at a moderate pace amid marginal economic growth and the industry would observe a limited demand. Looking at the Q3 and Q4 results of 2019, in a recent report, published by CBRE in their Asia Pacific market analysis – ‘Regional Grade A net absorption contracted by 24% q-o-q or 39% y-o-y to a three-year historical low of 10.9 million sq. ft. NFA. The large volume of new supply, slow pre-leasing and lack of new sources of demand ensured rents declined by – 0.2% q-o-q. However, we expect a mushroom from the midst of the year,” said Vineet Taing, President, Vatika Business Centre.
“We expect a series of real estate projects to be delivered in the coming year. The demand is expected to gain pace being propelled by affordability. Though overall demand is still weak, it is picking up in the affordable and mid segments – a trend that is expected to continue into 2020. Going forward, we foresee affordable housing to be the key driver of demand. We also expect time and price correction to take place which will increase affordability in most pockets,” said Ajay Gupta, Director, Corona Group.
With so many positive factors playing their role to maintain an ecosystem of mutual trust and positive sentiments in the industry, the real estate sector has high hopes from the coming year.