Indian Real Estate- A Sector of Enormous Growth and Opportunity
Indian market is ocean of opportunity, either it is real estate or information technology. With the advent of the new government in 2014 general election, we can accept a huge growth in real estate sector in India. Before writing anything further I want to clear the definition of real estate, “ real estate is a property consisting of land and building on it, along with its natural resources like crops, minerals or water and immovable property of this nature.” Prime minister Narendra Modi has some ambitious projects like Bullet Train and smart city.
So regarding the smart city we can hope a bright future as well as growth in Indian real estate. The government has taken many steps to create an environment of the growth for the sector. The policy made by the government will lead to the balance of demand and supply in the upcoming future, the two- pronged policy will allow a greater amount of funding on the one hand and extending liquidity to the end –user to strengthen affordability.
To boost the Infrastructure activities in India, Indian government has allowed foreign direct investment up to 100 % in real estate project, this will enhance the development of the township, commercial and industrial projects. There is also some provision of reduction in this sector which will boost urbanization in tier -2 and tier -3 cities which are struggling for growth. Reduction in the area from 50,000 square meters to 20, 000 square meters and minimum capitalization for FDI investment will from ten million USD to five million USD.
The Government announced some key reduction in direct tax structure in the interim budjet to stimulate the sector, the increase on exemption limit from Rs 2 lakh to 2.5 lakh will help household saving and the interest on home loan has been raised from Rs 1.5 lakh to Rs 2 lakh. This will motivate home buyers who have been reeling under the pressure of high inflation and high interest rates.
An overview on opportunity and growth in real estate sector in India.
In the upcoming decades, we can accept a tremendous growth in real estate sector of India. Plenty of ambitious projects are fascinating foreign investor. Registering a growth rate of 35 % the sector is estimated to be worth 15 billion US dollars with the number of IT parks, commercial and residental township being constructed across India. Real estate also involves purchase,sale and development of land, residential and non residential buildings. After agriculture this sector is the second major source of employment generation in the country so we can accept an enormous opportunity and growth of real estate in Indian market.