Rental housing is a critical component in the urban areas wherein people are moving in for either business or for job opportunities. Lower income households working for blue collar jobs prefer rental housing as it fits their job profile and income. For the unemployed or less income earning people, access to housing is the priority rather than owning one.

According to a survey, it suggests that urbanized states like Maharashtra, Delhi, Andhra Pradesh and Karnataka to name a few are few such states owing higher percentage of rental housing. Large cities in the above states have about 40% of rental housing followed by 28% and 36% which goes for small and medium cities. Bangalore and Mumbai dominates the market with higher percentage of rental housing. This rise is due to large MNCs being setup and large scale construction that happens across these cities.

Budget also proposed an extra incentive that people can make use of while purchasing affordable housing. When one buys a home for over more than Rs.45 lakhs, they would receive a deduction of Rs.150000 for the interest on housing loan. An enhanced deduction of up to Rs.3.5 lakhs on the interest can be taken advantage of by people purchasing an affordable housing. This move by the government will give a boost to the real estate sector. This idea will also been seen rising in metropolitan cities like Hyderabad and Kolkata to name a few. Mumbai will not be able to cater this due to the paucity of land it faces.  

In terms of carpet area The Budget has proposed to increase its carpet area from 30 Sq meter to 60 Sq meter which will be seen in metropolitan cities only. This is to align with the guidelines in the Income Tax Act along with the GST act. Whereas other cities like Surat, Vadodara, Jamshedpur and other non metropolitan cities will witness a rise from 60 Sq meter to 90 Sq meter. This act made sure that one could afford homes at a decent rate balancing GST rates and also help improve real estate sales. With this 2018 story in hand, in 2019 if experts are to believe with economic growth and increase income buyers are sure to raise the demand of residential and commercial properties.

Mumbai - in metropolitan city like Mumbai, a minor raise in the residential corridor is expected. This includes the areas like Malad, Goregoan and Kandivali track. Even emerging locations like Kalyan Dombiwali are sure to expect a rise due to its location.

Bangalore - being the capital city and IT hub, this city is sure to witness a rise in the upcoming quarters. With new launches by Godrej, Sobha and Prestige, one can surely expect the sales to rise gradually as there are multiple options available. Key areas in Bangalore include Kanakpura Road including commercial hotspots like Electronic City and Sarjapur. These remain in the North Bangalore which also provides buyers a close proximity to Bellary Road and International Airport.

Hyderabad - with the expansion of commercial addresses, apartments for sale in Hitech city Hyderabad will witness a growth in the outward areas like KoKapet, Narsingi, Puppalguda. One can witness multiple options with premium apartments in Hyderabad in the north and south corridors.

Pune - Pune will experience affordable pricing but sales are expected to remain stable. Key emerging locations like Wagholi and Gahunje are expected to witness a rise.

Jaipur - with slow development in Jaipur the sales also remain steady. Similar trend as of 2018 is to be witnessed this year as well. Kalwar road, Tonk road, Sikar road, Agra road might interest buyers.

Chennai - first half of the year remains stable in terms of sales. During the second quarter the prices will expect an appreciation. Key corridors like OMR, Guindy are the major growth locations.

Rentals in 2019

With new jobs on a rise especially in the metropolitan cities, we can expect About 30 percent of upcoming projects. With the change in buying patterns, real estate players also plan to change their game of marketing. With young professionals looking for affordable Rental options, there is a healthy demand to even provide luxury housing for corporates. Balancing this is a trick which real estate sellers need to incorporate. Hostels and co- living are also changing the housing formats so as to drive young workforce and students.

Is it wise to invest this year?

Just like shares, bonds or more, one needs to be aware of certain factors before considering real estate investment. Understanding the market trends, location will help yield higher profits. Last year residential property has seen a boost. Residential property sales rose to 8% in the first half of 2018 when compared to 2017. The top seven metros Mumbai, Delhi, Kolkatta, Pune, Bengaluru and Hyderabad. The rapid rise was due to the emerging markets that evolved with the increase in infrastructure and economic developments.

Post demonstration, sales in real estate have seen a significant growth. It has witnessed increase in demand for affordable housing rather than luxury housing or high end properties. Another factor that has driven the sales last year is its flexible payment options. Real estate sellers has a wide range of payment options including digital lenders, housing loans from banks, NBFCs. With this buyers get to buy an affordable house with lower interest rates. No floor rise cost and income tax rebate on home loans make it continent for buyers to buy their own house.

Builders are leaving no stone unturned in attracting customers. With multiple options of professional builders, one also need to invest in extra to attract customers. This has led to builders attracting them with theme based projects. Kid centric homes or senior comfort zones are few themes matching with the amenities that makes living easier. With these themes, buyers can now choose that match their lifestyle. Additional to this, various other amenities like CCTV surveillance, power back up, swimming pool, gym and others help enhance their buying options.

Be it rental housing or owning one, it all depends on the amount one is ready to invest and it’s long term returns. Professionals who get their five year transfer can consider investing in their home city a wiser option. Professionals looking for rentals or hostels also have varied options with the increase in real estate.