The residential real estate sector is considered as the backbone of the Indian economy to significantly contribute about 6% of the country’s GDP. It is also envisaged that there would be a further rise of 7 to 8 % on the net GDP contribution by the sector.
Indeed, the residential real estate in India plays a key role in the nation’s economy as it stands second after agriculture in terms of generating employment in the country.Let’s take a glance on some interesting facts of Indian realty arket.There are some convincing facts that push the demand of property in India.
According to Jones Lang LaSalle, the rapid economic revival in the nations like India, Russia and Brazil would lead to faster growth of the property markets in those countries compared to the realty markets of UK and US.
From late 2009, the Indian property market has set a benchmark and started an unstoppable journey of growth. Within a time of 5 years, it is estimated that there would be up to US$ 12.11 billion investment. over a period of 5 years.
The real estate growth is now no more confined to only metro cities. The expansion of the realty market is set to spread on a pan India basis. All the cities including the tier-I and tier-II ones are included in the list and has tighten their belts.
Residential real estate covers about 80% of the property market. While the remaining sectors constitutes hospitality, retail and other commercial structures. Despite covering the larger strata of the market, the residential estate is envisaged to boom over the next decade and set new benchmarks. It would not be wrong to say that ‘Sky is the limit now’.
Modi government has proposed to build houses for Economically Weaker Section (EWS) & Lower Income Group (LIG). The initiative, that will provide interest subsidies & financial aid, envisions building around 110 million individual units by 2022, the 75th anniversary of Indian independence. With an objective of inculcating utmost transparency,
Government has proposed a slew of regulations in the form of Real Estate act make it mandatory for the developer to share all the relevant information regarding projects with the Real Estate Regulatory Act (RERA). It also stipulates that developers should park 70% of their cash inflow in a separate bank account to ensure better linkage between cash inflows & project construction. The act will also make developers liable for any delay in construction. All these factors have helped in building a trust relationship between buyers and sellers or builders/ developers and investors.