A quick guide to real estate trends for 2020 in Delhi NCR
2020 has been a challenging year for all sectors of industries and also the economy. The real estate sector is rapidly evolving and has contributed to the growth of the country. The new sanctioned policy, trade supporting laws, and the structural reforms have played a vital role in shaping the industry. These policy changes and law enforcement actions have built a solid buyer-seller relationship. These regulations defend both buyers and sellers against any malpractices and deception. It also increased the transparency between them. Here are the four real estate trends in Delhi for the year 2020:-
- The downward trend in residential development.
Residential development means developing properties on private lands to provide living accommodations to people. Many states and builders focus on residential development as a flourishing sector. They build lavish housing developments like high rise apartments, villas, independent houses, etc to accommodate the growing population of the country. Delhi, being the capital of India and one the cities with a large population has always focused on residential development. The oversupply in this sector from the year 2013 and other government policies has led to a rapid decrease in this sector. So the downturn in the residential market all over the nation is more likely to impact Delhi more than the other places in India.
- The rise in commercial real estate.
There are real estates that are solely built to generate profit. The profit can be generated through rental income or capital gain. Infrastructures like medical centers/hospitals, retail stores, malls, warehouses, office buildings, factories, hotels, resorts, etc come under this category.
However, the building as a whole does not make for a good commercial property. There many other things like the neighborhood and fundamental amenities that contribute towards making a good commercial property. Delhi, as the capital of India, attracts many companies and tourists. Thus, a gradual increase of at least 30% annually in commercial real estate for office spaces/buildings has made it to be one of the profitable business and development sectors. Noida offers comparatively cheaper basic office amenities in and around Delhi and thus the growth is the highest in Noida.
- Growth in the logistics sector.
The rising demand for pharmaceutical services and e-commerce has ensured a steady growth in the logistics real estate sector.
Delhi is one of the metropolitan cities and also home to multiple warehousing projects. So the logistics sector is predicted to see a long term growth in this area. A rise in demand for in-city warehousing and urban logistics will support the growth of the logistics sector in big urban cities like Delhi. Due to the accelerated development and business sector expanding, the capital city of India will typically see a rise in the logistics real estate sector. Although the hunt for a good developer in the north of India is a challenge, it has little effect over the ever-growing demand.
- Need for co-living spaces and co-working spaces
This recent new trend is popular among millennials. Due to the recent changes in investing and buying habits of millennials, the demand for a new kind of shared living and working spaces has gained nationwide popularity. The increase in living costs has led to the youth coming up with creative ways to save up their money and survive in huge expensive cities like Delhi, Mumbai, Bangalore, Hyderabad, etc. Thus an increase is seen in rental markets for co-living spaces, and similarly, an increase in commercial co-working space is seen in the commercial real estate market.
To sum up, these four trends are observed in the real estate market for the year 2020 in Delhi and will help the buyers and sellers to make wise investment decisions. However, these trends can be subjective to changes due to several external and internal factors.
