Susanna721

De BISAWiki

The Indian economy has grown rapidly through the past 15 years, which contributed to exponential development in real estate properties across India. Based on a recent article by Indian government, realty industry in India accounts to a whopping 11% in the National GDP. Ever wondered why there's speedy development within this industry, this case study gives a snapshot of aspects that's contributing to its favor.

Population of numerous huge cities in India has grown tremendously over the past decade. There is a colossal demand for residential and commercial properties in Tier 1 and Tier 2 cities. A number of the Leading 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 put 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 economic policies by cutting interest rates to make house loans by banks to buyers very easily accessible and inexpensive.

b) Growing Urbanization and big scale migration of population from rural to urban places in search of employment, larger income, better living circumstances which has led to an improved demand for residential and industrial properties inside the region.

c) From an Investment standpoint, given that stocks and mutual funds are very volatile to industry situations, a lot more individuals including middle-class earnings group, Non-Resident Indians are investing in real estate which offers higher returns both in Quick and Long term investments as a result of soaring property prices. Investment in residential properties also gives an choice for residential purchasers a second revenue to supplement their month-to-month Revenue.

d) Enterprise activity and Setting up of IT improvement Centers, BPO, big scale manufacturing units in automobile and Engineering Sectors by multinationals has spurred development in commercial workplace space specifications. As increasingly more MNCs setup shop in cities it opens new lines for all round development & investment in real estate industry. These industries bring lot of job opportunities in to the system. More jobs means rising earnings levels, elevated purchasing power for property buyers which is also another factor for real estate investment and growth.

e) State Governments in India have given green signal to develop residential townships, commercial centers, shopping malls near Industrial hubs, IT hotspots inviting both domestic and international investments for Constructing Connectivity bridges, state roadways, rail networks to ease the commuting traffic. Many big residential and commercial projects have sprung up to cater to the growing housing demand for real estate.

f) Augmenting the real estate development 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 development and investment possibilities in India for several years to come.

References:

Real estate Regulatory Authority of India