9 Reasons Why You Should Love Indian Real Estate Market
Indian real estate developers are slowly embracing the mantra of greater transparency. This requires a break from the past. Indian real estate markets have always been unstable, because of changing economic conditions and arbitrary real estate regulations. All-pervasive regulations that constrain and confine real estate developers have hurt India's image in the eyes of global investors. For the real estate sector to expand, we need all-round industrial growth, an expanding job market, and a steep rise in the purchasing power of the common person. Nevertheless, there are many reasons why Indian real estate markets are promising.
Here are nine reasons why you should love Indian real estate markets.
- The rise of new cities
The growth of the Indian economy depends largely on urbanisation. Real estate developers play an important role to play because they change the skyline of Indian cities. Some of the biggest Indian real estate developers took huge risks to open up entirely new cities for development. Without such real estate developers, cities like Gurgaon would not have risen from anonymity to prominence. Real estate developers built houses and office spaces in areas where nothing existed, not very long ago.
- Well-established mega cities
When their planes land in cities like Mumbai, Gurgaon or Bengaluru, the hearts of Indian citizens swell with pride, because Indian cities have grown tremendously in the past few years. The most striking proof of the growth of major Indian cities is in the tall residential and commercial buildings built cheek by jowl. Indian cities are still not anywhere as developed as the largest cities in the world, but we have come a long way. Wide road networks connect new areas to existing areas. The economic epicentres of cities have been developing quite rapidly.
- The growth in employment
New jobs are being generated in Indian cities every day. The real estate sector is one of the largest employers in the country. The construction industry employs over 33 million people across India.
- Flourishing consumerism
Multinational companies are keen on extending their operations to Indian cities. The real estate industry will benefit from this because physical real estate is an important component in any business. This is especially true of global retailing because consumerism has been flourishing in the Indian cities in the past 25 years. When more international players enter Indian cities, more and more jobs will be generated.
- The real estate industry cross-fertilises with other major industries
The real estate industry drives demand for the services of major industries like steel, cement, steel, chemicals, paint, tiles and fixtures. The real estate industry plays a major role in setting up these industrial sectors to restructuring and growth.
- High economic growth
The Indian economy has grown at a fast pace in the past few decades. People are spending money more than ever. Affordability does not guide choices of homebuyers as much as it did in the past. They are now willing to pay for luxury living. Positive economic growth has also led to rise in disposable incomes among young people, and this subsequently leads greater consumption of high-end real estate.
- The growth of the IT/ITeS sector
The growth of the IT/ITeS sector has led to greater demand for residential and office space. In cities like Bengaluru, IT/ITeS contributed to nearly 80 per cent of office space absorption. Office and residential spaces now cater to the needs of workers in the IT/ITeS sector.
- Growing demand for housing
Everybody needs housing, and this is going to remain true for long. Urban sprawl is not new anymore, and this has led to rising demand for housing. Urbanisation in India is now faster than ever. The growth of urban population has reached a pace of 2.5 per cent per year. In the next two decades, more and more Indians will settle in urban areas.
- International real estate funds
International private equity firms and real estate funds are investing in Indian real estate markets. Such funding seeks reputed real estate developers who build quality real estate projects, have transparent practices, and deliver projects on time.