The real estate scenario in India
The Indian real estate sector is one of the fastest growing real estate market in the world. Real estate is a driving force of the Indian economy which the Indian Government also realizes, thus, it has introduced several friendly reforms to boost the overall sentiment of the industry. Over the past few years, private participation from real estate developers have changed the face of India by developing the state of the art infrastructure. Today, India houses some of the most beautiful architectural marvels in residential, commercial and retail spaces.
The development has not been confined to metro cities, as developers have come up with architectural masterpieces in the Tier II & Tier III cities as well. Another interesting aspect is the expanding borders of most Indian cities like Delhi, Mumbai, Bangalore, Kolkata, Pune, Hyderabad and Chennai. All these cities have expanded in size to accommodate development activities. Due to improved infrastructure and facilities, most Indian cities have seen a steady property price appreciation. Although, there has been a slight consolidation in the recent past, prices have increased handsomely over the past decade and in future too the real estate market is set to deliver returns higher than any other asset class in the country.
Many households now enjoy double income benefits, people have more disposable income and they prefer to buy their own property rather than living on rent. This change in attitude has led to increase in demand in the residential housing segment. The real estate market is also witnessing a decent demand for commercial development due to a paradigm shift from unorganized retail towards organized retail scenario. Several MNC’s are eying to invest in commercial areas in India to establish their offices here.
The real estate sector is faced by some issues like liquidity crunch, unsold inventories, labour problems, etc that have capped it’s growth in the recent past. The new government have announced some friendly reforms like incentive for affordable housing, developing 100 smart cities, speeding up the road development projects, increase in the income tax exemption on repayment of interest on home loan from 1.5 lac to 2.0 lac and increase in IT exemption limit from 2.0 lac to 2.5 lac that has started a sentiment revival for the sector. With continued growth driven strategies and activities coupled with due attention and support from the government will help the real estate of India to skyrocket.