The Indian real estate sector plays a significant role in the country's economy. The real estate sector is second only to agriculture in terms of employment generation and contributes heavily towards the gross domestic product (GDP). Almost five per cent of the country's GDP is contributed to by the housing sector. In the next five years, this contribution to the GDP is expected to rise to 6 per cent.
There are various developments and elevations which are taking place in the real estate sector with more number of apartments in India and owing to this, it is growing at a fast pace. Various factors are responsible for the growth of this sector and its emerging trends. There are few countries which are witnessing a high rise whereas few countries are witnessing a downfall in this sector.
Another key factor for the development of real estate in India is the kind of policies adopted by the government to enable easy investments in the industrial and the economic sector. In the past few years, the government of India has adopted a new stand regarding the foreign direct investment (FDI) policies which encourages other countries to invest in Indian properties. The real estate in India is the second most favoured destination for the FDI and the country has attracted three times the foreign investment in the past years. The reason for the sudden surge in the Indian real estate is the positive outlook of the Indian government. There is a rapid growth in the commercial, residential and retail sectors of India in metro cities like Mumbai, Delhi, NCR, Bangalore and Chennai.
The Importance of Real Estate in India
As mentioned earlier, the real estate in India is one of the major revenue generating sectors with the growth and the depreciation of this sector which influences the economy. Owning a property in India is one of the greatest assets and is one of the most profitable investments in India. There are very less chances of a loss as the real estate growth graph is escalating day by day.
Factors responsible for the rapid growth of real estate in India.
The steady expansion and the development of the IT sectors in India have played a major role in the development of the real estate sector. The constant expansion of the IT sectors; MNC and corporate firms have given way for the growth of the real-estate sector particularly in the commercial sector. Apparently all these factors have also provided better employment opportunities to the people of India.
The adoption of the Foreign Direct Investment (FDI) policy is another factor responsible for the growth of real estate sector. As mentioned earlier, the FDI policy has resulted in the arrival of foreign investors in the Indian real estate market. The initiation of the foreign investors will lead to an efficient management and use of more advanced technology.
The easy access to the bank loans has resulted in easy property investment. There are various national and multinational banks in India which offer easy property loans; naturally this makes it easy for the property buyers even from the middle-class society.
The growth of the Indian economy is one of the fastest all over the world. This factor directly influences the real-estate sector of India. Major cities like Delhi NCR, Mumbai, Hyderabad, Chennai, Bangalore, Pune and Kolkata are greatly affected by the growth of Indian economy.