The real estate market had a difficult year in 2019 across many aspects. The funding crisis loomed large for many firms and the situation worsened with the economic slowdown resulting in a reduction in housing demand. The RERA and GST fallouts were felt heavily in 2019, with many investors choosing other investment options and shying away from putting their money into real estate. Overall an estimated 5 lakh housing units are lying unsold, even though there is a need for housing units in the country. But towards the end of the year there was a slight uptick in the market sentiment especially with a few cities reporting a renewed interest from buyers for completed housing units as opposed to under-construction ones.
Going forward into 2020, the housing market looks to gain on 2 angles — ready-to-move-in units and units below Rs 50 lakhs. These two categories of housing units are more likely to see higher movement of stock than the others. Another factor that is also becoming a strong point for buyers is the infrastructure of the location. This was significantly evident in Gurugram once the Dwaraka flyover opened and the area saw an immediate uptick in housing unit demand. The housing unit buyers are also not investors anymore and this trend is set to continue in 2020 as well with more end users purchasing homes as opposed to investors.