Real estate is one of the most profitable and globally recognized sectors in the world. India is the second largest populous country after China, and it is expected to overtake it by 2030. India has exhibited a historic economic transition and pushed its GDP to a great extent. The Indian Real estate is vast and unique and it makes distinct in the global scenario. Besides, the primary players like developers, buyers, sellers, real estate agents, landlords, and tenants, the sector also supports more than 200 ancillary industries like steel, cement, timber, brick, and so on.
Real estate sector is the 2nd highest employment generator, besides, the primary players like developers, buyers, sellers, real estate agents, landlords, and tenants. The sector also supports more than two hundred ancillary industries like steel, cement, timber, brick, and more. It is expected that this sector will incur more non-resident Indian (NRI) investment, both in the short term and the long term. With startups growing prominently in India, Real estate sector is not far left behind where a lot of B2B and B2C startups have started working alongside the real-estate sector.
Your wisest investment starts with buying a land, and ends with constructing grand, spacious and magnificent Mansion which fill your life with delight without unsettling the ecological balance of nature
The Scenario of Real Estate Before
After the declaration of Indian government that it would start allowing 100% foreign direct investment (FDI) in India in 2005, the last decade saw a sizeable foreign investment in the sector. Reportedly, between 2000 and 2020, the real estate sector received around $42.50 billion in FDIs.
After gaining the long awaited freedom in 1947, Indian real estate sector witnessed several changes. In the 1950s and 1960s, the government launched several public housing projects to provide affordable housing to low-income families, aiming to reduce the housing shortage in urban areas and improving living conditions. 2000 onwards, the government also commenced the construction of residential colonies for its employees in major cities equipped with basic amenities such as schools, hospitals, and parks. Indian government also introduced land reforms in the 1950s and 1960s focusing on redistributing land to the landless, tenant farmers, and rural laborers.
This initiative has significant impact on the rural real estate sector and led to the emergence of new players in the industry. In addition, Indian government has taken few remarkable steps like Golden Quadrilateral, for roads, started several new trains, improved water connectivity through the Sagarmala project which fueled up economic growth.
As its immediate effect, India has experienced rapid urbanization in recent decades, where more people started migrating from village to towns in search of jobs. After the introduction of liberalization, Indian real estate sector has witnessed an influx of foreign investment in real estate. This broadened the way towards the development of large-scale real estate projects, such as IT parks, shopping malls, and entertainment complexes.
Theodore Roosevelt rightly said that, “Every person who invests in well-selected real estate in a growing section of a prosperous community adopts the surest and safest method of becoming independent, for real estate is the basis of wealth”.
Introduction of RERA
In 2017, the Government has implemented the Real Estate Regulation Bill (RERA) to make developers accountable for projects and boost transparency in the sector. RERA was also designed to help make the sector more competitive, induce discipline, and make it customer-friendly. This bill has helped build trust between developers and buyers and create a structure around under-construction projects making it more accountable and transparent.
“RERA has strengthened the trust between the customers and the real estate developers”, - PM Modi
“RERA will go a long way in cleaning up the sector and making it more attractive for all stakeholders. Customers will now be protected on all fronts and can make their purchase decisions with a lot more confidence”, - Anil Pharande, Chairman, Pharande Spaces
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