The Return of Residential Real Estate
Posted: Jan 06, 2020
Real Estate is one of the most debated topics and if it is about the residential sector then the heat will surely increase. For the past few years, the residential real estate sector has experienced its fair share of highs and lows. Even though the market has been bumpy, this division hasn’t lost its pride in being the best option for investment.
In the late 90s and some of the early 2000s, residential living was somewhat limited to an ancestral house owned by the great grandfathers passed down to the later generations. Soon after, as the expansion of commercial and residential markets increased the population moved out of the joint families into more nuclear families purchasing an apartment of their own.
More nuclear families fueled the need for more living space. The staggering income growth, government initiatives, and affordable housing are helping the residential real estate market to attract more masses. The migration of people to the major cities in search of income, which is still present, made the developers rethink their approach towards providing more residential space within a limited area.
Need for Mixed-Use Development:
People often dream of maintaining a healthy work-life balance, which is a difficult task. As most of us are located in unplanned locations without selecting the right home people often spend more time commuting due to traffic congestions. The solution to this is the development of mixed-use spaces which are a blend of residential, commercial and also retail spaces leading to a community type living. Most western countries have adopted this trend helping them save more space.
Modern townships are the perfect examples of providing both affordability and luxury. Luxury can be seen in terms of modern amenities, facilities and very well designed homes with large open spaces. The developers are now paying more attention to providing facilities like large open spaces, modern retail, a variety of entertainment and dining options, parks for children, recreational spaces and health clubs within gated community townships.
It is not only about recreating the amenities but providing open spaces with a comfortable living to the residents which they can appreciate.
As such projects combine residential, commercial and retail, the monetary value increases helping to increase the demand. Not only the investors be happy with making investments in such assets but this ‘live together’ approach also adds value to the developer’s portfolio. Adding to it, the government is also leaning towards making affordable and efficient housing with proposals such as Housing For All, PMAY (Pradhan Mantri Awaas Yojna), AMRUT (Atal Mission for Rejuvenation and Urban Transformation) plus Rera to protect the interest of homebuyers. These well-defined incentives combined with the changing dynamics of the country’s population is asking for greater improvements in the real estate industry. The continuous efforts from the government are targeted towards helping the real estate make a comeback. Furthermore, with the increasing number of the young working population, there will be an increasing demand for residential living space. The investment aspect will also grow due to the greater potential that this sector holds.