Introduction:
Indian Real Estate Sector- An Overview:
The Indian Real Estate sector has grown four folds in the last decade by becoming one of the fastest growing sectors in the world. It has also gained increased attention of not only the domestic players but also the foreign investors. It has contributed substantially to the increased and ever increasing population base, rising incomes and thus increasing standards of living and rapid urbanisation.
The sector has transformed from being an unorganised one to a dynamic and organised sector in the past decade. After recognising the need of infrastructural development in lieu of raised standard of living, Government has realised the importance and has plaved a pivotal role in providing financial assistance and support to the sector. In addition to this, infrastructure forms a prerequisite for sustaining the long term momentum of the economy.
The Indian Real Estate Sector is one of the most recognised sectors. In the country, it is the second last employer after agriculture and is slated to grow at 30% over the coming decade. A recent study has shown 35% increase in the NRI investment interests in the Indian Real Estate Property market.
The Indian Real Estate comprises of four sub sectors- a) Housing; b) Reality; c) Hospitality and; d) Commercial. The growth of this sector is well catalysed by increased demands of urban and semi-urban accommodations along with the growth of corporate environment and demand for office spaces. In terms of direct, indirect and induced effects, the construction sector ranks 14th amongst all sectors of the economy. Bengaluru has featured as the most preferred investment destination for NRI investors followed by Ahmedabad, Pune, Chennai, Goa, Delhi and Dehradun. Due to attractive valuations, Private Eqity has also picked up momentum. Further, the Government of India has also created a conducive environment by introducing new policies to help garner the real estate sector, in particular.
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