Economic slowdown in the country has forced the real estate industry to face a lot of upheavals in the past five years. Demonetization and the implementation of the Goods and Service Taxes accelerated the slowdown and served almost like a death knell to the industry. However, experts believe that the real estate industry is on its course to weather the storm.

As per a research report by Liases Foras Real Estate Ratings & Research, the top 35 cities in the country have recorded a 5% growth in its sales volume as compared to last quarter and a 3% on year growth. Not only that, but 27 cities among 35 have also witnessed an upward movement in its sales volume this quarter, signaling green shoots in the industry. The rise in new launches, a big determinant of builder confidence, were up 38% from a year ago, indicating a possible turnaround in the sector.

Real Estate Research Group ANAROCK believes that even as the real estate industry has not witnessed any direct announcements in the recent budget except for affordable housing, sectors such as education, infrastructure, data center, warehousing, and logistics are expected to have a positive impact on Indian real estate sector. Affordable housing continued to be the focus area in this year's budget and therefore it will be one of the key segments which will drive growth in the industry.

The tax exemptions allowed for the buyers and the developers have been extended for another year. This is aimed to provide the necessary fillip to the segment which will help in achieving the government's vision of "Housing for All". The tax exemptions allowed in the new regime are also targeted to benefit the buyers of affordable housing, said the report. The affordable segment accounted for 40% of the total supply in 2019, similar to 2018, said ANAROCK real estate consultant.

Experts believe that even as new launch additions will happen at a slow pace, housing sales are expected to see improvement, especially in ready-to-move properties or properties nearing completion. Analysts also expect housing prices to not see any major changes going ahead, similar to marginal and flat pricing changes noticed in 2019.

ANAROCK believes that in the future branded players will gain more popularity with millennials' as their quest for the branded products remain at an all-time high, and as many homebuyers have previously burnt their hands by purchasing homes from small unscrupulous players. Further the overall economic growth could be bolstered by initiatives like 'Make in India' which will boost manufacturing, retail and e-commerce activity.

Along with government incentives, low home loan rates will also encourage people to achieve their homebuying goals. Over the last one year, the repo rate has seen a 135 basis point reduction, indicating the other means by which the government is trying to pull the sector. In December, State Bank of India (SBI), the country's largest lender, reduced its external benchmark rate by 25 basis points which have encouraged a lot of new home buyers to avail loans at the new interest rate.

To sum things up, the realty market particularly the residential real estate segment saw some green shoots in 2019 after a prolonged period of tepid activity. However, even as the current scenario points towards a subdued beginning, experts believe that major change will be noticed as we move towards the second half of 2020 with more measures and sops coming into effect.