The sector of real estate in India has gained more prominence with a significant increase in business opportunities, liberalisation of economy and increasing demand for housing and commercial space. The real estate segment is booming at a phenomenal 30% rate each year. After the agricultural sector, real estate is the second largest in terms of providing employment. This sector is attracting heavy investments these days. There is a huge demand for residential units, offices, manufacturing sector, hospitality industry, shopping malls, logistics parks and other property segments. The real estate giants are building townships and spreading smaller cities. The real estate and construction segment have a key role to play in developing the core infrastructure of India. This is one of the mote prominent revenue generating sectors.
During the last ten years there has been a lot of churn in the real estate market. The builders, developers, material manufacturers, finance companies, all have scaled up their operations in terms of delivery and quality in order to match global standards. Real estate can be classified into categories like commercial residential and agricultural. The physical features of the property, property rights, geographical area and rate of developments, all these influence price of real estate.
Scope for Residential Property Development:
The population is India is extremely high and it is increasing at a tremendous pace. The basic need of every person is a shelter; therefore, real estate sector of India is growing rapidly. A large number of people in India are ready to buy their own home. The economic condition of the country influences this sector to a great extent. But the things were not so bright previously when between the first half of 2008 and 2009 a global meltdown was witnessed by the residential real estate companies in India and there was a shocking downfall in demand and capital values. Although, the situation started changing during the second half of 2009 mainly in the prime cities of India and the reason for this definitely lay hidden in improvement in economy.
The premier real-estate companies in India are offering loads of housing and commercial projects to the buyers and a high level of operation is visible in terms of delivery and quality matching global standards. To attract potential buyers, the builders and developers began launching residential projects among which there were several mid-income housing projects. As soon as the global economy started getting better, demand for housed mounted up. Low-interest rates and improved economic condition made more and more people coming up for buying homes.Especially those, who had put their home buying plans on hold for affordability issue and job-related uncertainties, gained confidence and started booking houses.
The real estate sector is growing at a fantastic pace in India in the presence of private banks. To fulfil the dream of purchasing their homes, these banks are offering loans. The sustained high GDP growth rate and increasing GDP is giving a momentum to the demand for real estate.
The scope for real estate market in India is simply unlimited. During the next twenty years the sector is sure to witness an unhindered growth.