It is expected that Commercial Real Estate will definitely do well, leading to growth in absorption in this segment. Leasing volumes will further increase. Commercial Rental space will see appreciation, however, these will be city-specific growth. In 2020, foreign investors will further pour in funds in Commercial Real Estate in India. More developers will be seen going the REIT way.
However, Residential Sales will remain sluggish for the first part of the year 2020. There will be further consolidation. The absorption will happen more in the Affordable Housing segment in Ready-to-Move-in properties, with prices remaining flat. The consumer will buy residential space for self-use in central localities with all established social infrastructure. Notably, there might be a change in buyer behaviour where consumer will prefer to buy accommodation based on his choice, irrespective of its size – 2 Bedrooms in 900 sq. ft. v/s 2 Bedrooms in 1100 sq. ft., 3 bedrooms in 1400 sq. ft. v/s 3 Bedrooms in 1800 sq. ft.
When we talk about Warehousing segment, GST, e-commerce, Modern infrastructure of roads, air and water will further boost the use of warehouses. The investment will pour in from foreign and domestic institutions in this segment for at least a decade – this will be the space to watch out for investors in Real Estate.
Similarly, investing in Student Housing will usher in a new era in the industry, as it is a high-potential market, considering the wave of demand that exists in this segment. Given the Union Government’s ‘Study in India” initiative, which aims to attract 200,000 overseas students to study in Indian universities, the growth opportunities for realtors in this Student Housing segment is just limitless. The other factors attributing to the growth in this segment are – acute deficiency of campus accommodation facilities, demand for convenient and hassle-free housing options, and demand for furnished housing amenities among students. So, definitely Student Housing segment will pick up pace in 2020 and further in future. One another interesting area of focus for investors will be investing in Co-living and Co-working spaces. However, the strength of these business models will be ascertained in 3-5 years. I don’t think they will be the best real estate investment ideas for the long-term, however, could be a choice for short-term goals.