The Indian real estate sector plays a significant role in the country’s economy. The real estate sector is second only to agriculture in terms of employment generation and contributes heavily towards the gross domestic product (GDP). Almost five per cent of the country’s GDP is contributed to by the housing sector. In the next five years, this contribution to the GDP is expected to rise to 6 per cent.
There are various developments and elevations which are taking place in the real estate sector with more number of apartments in India and owing to this, it is growing at a fast pace. Various factors are responsible for the growth of this sector and its emerging trends. There are few countries which are witnessing a high rise whereas few countries are witnessing a downfall in this sector.
Another key factor for the development of real estate in India is the kind of policies adopted by the government to enable easy investments in the industrial and the economic sector. In the past few years, the government of India has adopted a new stand regarding the foreign direct investment (FDI) policies which encourages other countries to invest in Indian properties. The real estate in India is the second most favoured destination for the FDI and the country has attracted three times the foreign investment in the past years. The reason for the sudden surge in the Indian real estate is the positive outlook of the Indian government. There is a rapid growth in the commercial, residential and retail sectors of India in metro cities like Mumbai, Delhi, NCR, Bangalore and Chennai.
As mentioned earlier, the real estate in India is one of the major revenue generating sectors with the growth and the depreciation of this sector which influences the economy. Owning a property in India is one of the greatest assets and is one of the most profitable investments in India. There are very less chances of a loss as the real estate growth graph is escalating day by day.
The steady expansion and the development of the IT sectors in India have played a major role in the development of the real estate sector. The constant expansion of the IT sectors; MNC and corporate firms have given way for the growth of the real-estate sector particularly in the commercial sector. Apparently all these factors have also provided better employment opportunities to the people of India.
The adoption of the Foreign Direct Investment (FDI) policy is another factor responsible for the growth of real estate sector. As mentioned earlier, the FDI policy has resulted in the arrival of foreign investors in the Indian real estate market. The initiation of the foreign investors will lead to an efficient management and use of more advanced technology.
The easy access to the bank loans has resulted in easy property investment. There are various national and multinational banks in India which offer easy property loans; naturally this makes it easy for the property buyers even from the middle-class society.
The growth of the Indian economy is one of the fastest all over the world. This factor directly influences the real-estate sector of India. Major cities like Delhi NCR, Mumbai, Hyderabad, Chennai, Bangalore, Pune and Kolkata are greatly affected by the growth of Indian economy.
Apart from just the increase of the Indian investors, there are also various NRI real estate investors. India which considers property investment as a real asset has changed the definition. The realtors have portrayed the property investment as an element of lifestyle and a splurge of luxurious apartments with beautiful commercial complexes and extraordinary retail ventures. This in turn has attracted the NRI potential property buyers. There is an increase in the number of NRI property buyers in India who are planning to settle down in India as well. Ever since the real estate sector underwent a rapid upsurge, people from various countries have been relocating here. As mentioned earlier, the implying of FDI is one of the major reasons.
The ever growing economy, increasing purchase power of people and demand for real estate sector.
Demand for 100 million square feet for offices and industrial space. Presence of large number of renowned companies and a demand for office space.
Real estate in India creates huge returns. Also most NRIs are making a huge profit out of it.
Development in various other sectors like IT, ITES, BPO, auto-components, chemicals, apparels,pharmaceuticals and jewellery which in turn attract more foreign investors