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The Indian economy has grown quickly through the previous 15 years, which contributed to exponential growth in real estate properties across India. Based on a current write-up by Indian government, realty marketplace in India accounts to a whopping 11% from the National GDP. Ever wondered why there is fast development in this industry, this case study gives a snapshot of factors that's contributing to its favor.
Population of numerous large cities in India has grown tremendously more than the previous decade. There's a colossal demand for residential and commercial properties in Tier 1 and Tier two cities. A number of the Top 5 residential cities in India are Delhi-NCR, Mumbai, Bangalore, Chennai and Pune. There are many key 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 development by inviting investments from domestic and international players by producing business-friendly and Investor-Friendly atmosphere. Also, easing of monetary financial policies by cutting rates of interest to produce house loans by banks to buyers very easily available and inexpensive.
b) Developing Urbanization and big scale migration of population from rural to urban locations in search of employment, greater earnings, far better living situations which has led to an improved demand for residential and industrial properties inside the area.
c) From an Investment standpoint, given that stocks and mutual funds are extremely volatile to market circumstances, much more individuals such as middle-class earnings group, Non-Resident Indians are investing in real estate which provides high returns each in Brief and Long term investments because of soaring property costs. Investment in residential properties also provides an option for residential buyers a second income to supplement their monthly Earnings.
d) Business activity and Establishing of IT improvement Centers, BPO, big scale manufacturing units in automobile and Engineering Sectors by multinationals has spurred growth in industrial workplace space requirements. As more and more MNCs setup shop in cities it opens new lines for all round development & investment in real estate market. These industries bring lot of job opportunities in for the system. A lot more jobs means rising income levels, increased purchasing power for house purchasers which is also another factor for real estate investment and growth.
e) State Governments in India have given green signal to develop residential townships, industrial 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 huge residential and industrial projects have sprung up to cater to the expanding housing demand for real estate.
f) Augmenting the real estate growth are government policies within 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
