2016 was a year for end users because real estate investors have kept away from the market. Most of the newly launched housing developments specifically targeted end users. The developers offered stretched payment schemes in order to sweeten deals and lead to a better traction in sales.
During the first half of 2016, the residential market fared rather well because many end users were looking for homes that are ready for moving in. The year played well for buyers who were not averse to risks related to the quality of the product and project possession timelines.
Even the international market for real estate properties fared well in 2016 because of UK’s decision to leave the European Union. Brexit provided Indian investors with an opportunity to be able to invest in UK’s real estate market. The benefits are not limited to capital values because rental revenues were pretty exciting, too particularly in markets in the Manchester and Liverpool areas. The yields reached as high as 5 to 6%.
The domestic market for real estate did well in the affordable segment. Demonetization affected the luxury property market especially properties in the city centers. Most of the leading brands catered to the affordable segment in order to continue doing well. Affordability comes with a range of amenities however, the product does not make a big difference; it is location.
There are some locations that show a lot of promise for the affordable segment like Thane (MMR), Gurgaon (NCR) and Bengaluru (ORR). Thane has a lot of support infrastructure in healthcare, education, retail and entertainment. Thane is also accessible to roads and railway that is why it became a preferred location.
Apartments in Gurgaon come with a club, swimming pools and retail stores. Highlights of the location include good schools and medical facilities. Bengaluru is highly preferred by IT employees because it is near the leading IT tech parks.
In Thailand, investors prefer Karon beach property because they can easily be rented out to tourists. Phuket is one of the popular tourist destinations in Thailand and accommodations are almost always inadequate because of the growing number of tourists every year.