17 Aug 2022
What is fueling Real Estate Industry in India?
India is growing quickly, and so is the demand in the real estate sector. It covers four sub-sectors - housing, retail, hospitality, and commercial. This sector's growth is consistent with the growth in the business environment, the increasing demand for office space, and smart city and semi-urban housing.
The real estate brokers business is the second largest in generating employment, with the agriculture industry at the topmost position. Indian non-residents (NRIs) invest more in the real estate sector both short-term and long-term. The most popular property investment destinations for NRIs are Bengaluru, Ahmedabad, Pune, Chennai, Goa, Delhi, and Dehradun. Residential properties are a top investment choice in top Indian cities. After the COVID-19 pandemic and the successive lockdowns, people realized that their homes are the safest places to be in tough times, which has led to the development of the real estate market.
India's real estate market is predicted to grow to US$ 1 trillion by 2030, up from US$ 200 billion in 2021, and fund 13% of the country's GDP by 2025.
The Securities and Exchange Board of India (SEBI) has approved the Real Estate Investment Trust (REIT) platform, which will allow all kinds of investors to invest in the Indian real estate market. This will create an opportunity worth Rs. 1.25 trillion (US$ 19.65 billion) for real estate companies in the coming years.
As per RBI, the benchmark interest rate would remain at 4%, significantly boosting the country's real estate sector. Low house loan interest rates are expected to fuel housing demand and boost its sales by 35-40%.
Another initiative is the Smart City Project, in which the Indian government along with the partnership of the governments of several states, has made several efforts to foster the industry's growth. This project expects to construct 100 smart cities, that should be used by property dealers.
PPG F.I.E Association presents a varied range of real estate dealers. Responding to an increasingly educated and alert consumer base and keeping in mind the aspect of globalization, PPG real estate industries need to gear up and accept fresh challenges.