Real Estate Industry in India: Growth, Demand, Government Initiatives.
Real Estate Industry at a Global Level
The Real Estate industry according to The Aberdeen Standard Investments Research Institute (ASIRI) has downgraded its global growth forecasts amid subdued activity data and rising political and policy uncertainty. As a result projections no longer incorporate a re-acceleration in global growth. Instead, the expected global GDP growth is flat, and below the post-crisis average. Real Estate is static at the Global Level and is expected to rise at a slower pace.
Real Estate Industry in India
India’s Real estate industry is emerging a faster pace. Though it was running low for quite a few years, the recent data have shown potential in the growth of the country’s GDP that is mainly influenced by the growth of the Real Estate Industry in India. The construction industry ranks third among the 14 major sectors in terms of direct, indirect and induced effects in all sectors of the economy. Many economists have forecasted that till 2020 the national real Estate industry will be at $180 billion which is a major growth. This is due to the rapid urbanisation and demand of Realty in Indian market. More nuclear families are created, which automatically cater to the demand of commercial zones, schools, colleges, offices, hospitals, etc in the market rising the commercial as well the demand of residential property in India.
Factors responsible for Growth of Real Estate Industry in India
- Humungous Demand – With Growing urbanisation, higher income and economic growth are the driving factors that are increasing the real Estate demand in the Country. More and more people are looking forward in starting their start ups which is promoting the commercial sector Real Estate while and more nuclear families are constructed which is manifesting the Residential real estate. If we look forward deeply into this, the entire country is moving ahead in the direction of independent lifestyle. Hence, the demand of Real estate is directly proportional to the rising urbanisation.
- Growth of commercial amenities– We here imply the hospitals, schools and other commercial zones that are vastly increasing with the demand of urbanisation. This hereby is elevating the Real Estate Demand. Not just the Real Estate property counts, here again people want to purchase house that is close to all these commercial places.
- Governments Role – The government has put a lot of effort to build the Real Estate Sector that was facing a downfall in the past few years. With this help through the governments end we are now capable of stabilising the economy and Real Estate sector is hitting heights right now. Many foreign ventures have started investing in Indian market. And for the Indian Citizen, the govt has allowed 100% of FDI for townships and other development projects. Along with this, RERA is introduced to keep the builder in line with the possession dates. With this planning, the expected growth of Real Estate in India is estimated to be $ 180 billion with a growth rate of 9% per annum till 2020.
So, we can now easily conclude that the Real Estate in india has a very bright future ahead and investing in Indian market will be fruitful. In our previous blogs also, we have compared how Investing in Real Estate is beneficial over investment in gold and stock market.