The past year may have been eventful for the real estate sector with the implementation of Real Estate (Regulation and Development) Act and introduction of GST, but a report by Sotheby’s International Realty in partnership with PwC and RICS says 2018 is likely to bring about a positive change in the market, with only developers with strong balance sheets surviving, leading to a return of investor confidence and entry of new end users.
According to the report, the luxury home market, especially branded residences as a segment, will grow with the likes of Trump Tower projects and Four Seasons branded residences entering the Indian market. The report titled Luxury Real Estate Overview 2018 was released at the Global Luxury Realty Conclave 2018 organised by India Sotheby’s International Realty in partnership with the CII. ET was the media partner for the event.
“RERA is expected to institutionalise the process of selling real estate through only reputed realty firms. The stringent norms and registration process laid down for real estate agents will ensure the weeding out of unscrupulous agents which will lead to a far more transparent selling process…This is expected to consolidate the market with the existence of a few prominent institutional real estate brokerage firms and drive back investor confidence in the market,” said the report.
The report added that developers will focus on completing projects as the market transforms into end userdriven characterised by the requirement for completed units rather than underconstruction or launch-phase units. “With developers striving to complete existing projects and generate cash flows from the sale of completed units, the overall high supply overhang is expected to reduce substantially,” the report said.
It said brands matter more than ever to the new affluent consumers in choosing a real estate company for both buying and selling of assets and they expect a two-way engagement with luxury brands.
In January, Trump Towers made its debut in north India with a luxury residential project, its fourth in India, after Pune, Mumbai and Kolkata. Four Seasons Hotels and Resorts and Embassy Group also announced a private residential project in Bengaluru last month.