Meta19
De BISAWiki
The Indian economy has grown quickly through the past 15 years, which contributed to exponential development in real estate properties across India. According to a recent post by Indian government, realty market in India accounts to a whopping 11% of the National GDP. Ever wondered why there's fast growth in this market, this case study provides a snapshot of aspects that is contributing to its favor.
Population of numerous big cities in India has grown tremendously more than the previous decade. There is certainly a colossal demand for residential and commercial properties in Tier 1 and Tier two cities. A number of the Top five residential cities in India are Delhi-NCR, Mumbai, Bangalore, Chennai and Pune. There are many important drivers for this exceptional real estate development and investment in India.
a) Government of India has place up a roadmap for economic reforms to step up Infrastructure improvement by inviting investments from domestic and international players by producing business-friendly and Investor-Friendly atmosphere. Also, easing of monetary financial policies by cutting interest rates to create residence loans by banks to purchasers very easily accessible and affordable.
b) Expanding Urbanization and huge scale migration of population from rural to urban places in search of employment, greater revenue, better living situations which has led to an improved demand for residential and industrial properties within the area.
c) From an Investment standpoint, because stocks and mutual funds are incredibly volatile to industry circumstances, much more folks including middle-class earnings group, Non-Resident Indians are investing in real estate which provides higher returns both in Quick and Long term investments as a result of soaring home prices. Investment in residential properties also gives an option for residential buyers a second revenue to supplement their month-to-month Income.
d) Company activity and Setting up of IT development Centers, BPO, large scale manufacturing units in automobile and Engineering Sectors by multinationals has spurred growth in commercial workplace space requirements. As a growing number of MNCs setup shop in cities it opens new lines for overall growth & investment in real estate industry. These industries bring lot of job opportunities in for the system. A lot more jobs means rising revenue levels, increased purchasing power for house purchasers which is also another factor for real estate investment and development.
e) State Governments in India have given green signal to develop residential townships, commercial centers, shopping malls near Industrial hubs, IT hotspots inviting each domestic and international investments for Constructing Connectivity bridges, state roadways, rail networks to ease the commuting traffic. Several large residential and commercial projects have sprung up to cater for the expanding housing demand for real estate.
f) Augmenting the real estate growth are government policies inside the pipeline to allow FDI (foreign direct investment) in retail, insurance, healthcare sectors from the economy which will likely see the real estate improvement and investment possibilities in India for many years to come.
References:
Real estate Regulatory Authority of India
Real estate Regulatory Authority of India
