The growth of urbanisation in India demands broad and integrated development physical, social and economic infrastructure. The rapid urbanisation is expected to offer remarkable opportunities for real estate and infrastructure development in Indian cities.
Reform measures including administration of RERA, a push to affordable housing, smart cities mission and the Benami Transactions Act, have made India an investor friendly destination for the real estate market. Government of India has taken several initiatives to uplift the development in this sector.
Reform measures including administration of RERA, a push to affordable housing, smart cities mission and the Benami Transactions Act, have made India an investor friendly destination for the real estate market. Government of India has taken several initiatives to uplift the development in this sector.
Real estate markets are assured to benefit from the government’s policy push towards reforms, speedy completion of several infrastructure projects, emphasis on affordable housing, enhanced usage of technology and an over-arching ‘can do’ spirit riding across private as well as public sector enterprises today.
Residential market, the key inheritor of big bang reforms-RERA and GST- will be driven by increased transparency, consolidation and a huge push to affordable housing. We can see today that almost every real estate participant wishes, to devour of the affordable housing pie, because that is where the future growth story lies.
Things you should check before buying real estate-
Keep these critical checks in mind when you make the purchase decision:
1. Carpet area
Builders try to deceive buyers by touting the super areaof the project. Super area includes the usual facilities used by all residents like
the lobby, elevators ,staircases and corridors.
These facilities can sometimes be up to 20-25% of the super area stated by the builder.
What an owner actually gets to use is the carpet area, which can be 60-65% of the super area.
Make sure you know the carpet area of the property.
2. RERA
The Real Estate Regulation Act (RERA) can ensure timely delivery by preventing the builder from heading funds to other projects.
3. Accessibility
Location is critical while purchasing a house. Buyers like a house which is close to the workplace as well as other facilities. After listing projects a buyer must visit the area at least 2-3 areas and get a first-hand experience of the area.
4. Affordability for EMI
The first thing to evaluate is whether you can afford the EMI of the home loan you intend to take. The home loan EMIs, maintenance charges, property taxes and sundry expenses on housing should be within 30-35% of your entire household income.
The real estate investment market is facing number of important shifts that will help it in shaping a better future. You can’t even imagine that how much the real estate business will be changed in the co-ming years.
Capital market will eventually increase as per the market expertise.
It has registered huge investments in commercial property over the couple of years. The real estate business is rising in today’s world because of several factors.
Capital market will eventually increase as per the market expertise.
It has registered huge investments in commercial property over the couple of years. The real estate business is rising in today’s world because of several factors.
These are as follows:
2. Ease of doing business.
3. Top class infrastructural facilities.
4. Cutting edge public transport.
5. Many upcoming infrastructural projects.
6. Economic growth.
Real estate sector in India is expected to reach a market size of US$ 1 trillion by 2030 from US$ 120 billion in 2019 and contribute 13 per cent of the country’s GDP by 2025. Retail, hospitality and commercial real estate are also growing significantly, providing the much-needed infrastructure for India's growing needs.
Sectors such as IT and ITeS, retail, consulting and e-commerce have registered high demand for office space in recent times. Commercial office stock in India is expected to cross 600 million square feet by 2019 end while office space leasing in the top eight cities is expected to cross 100 million
square feet during 2019-21.
Gross office absorption in top Indian cities has increased 26 per cent year-on-year to 36.4 million square feet between Jan-Sep 2018. Co-working space across top seven cities has increased sharply in 2018 (up to September), reaching 3.44 million square feet, compared to 1.11 million square feet for the same period in 2017.
square feet during 2019-21.
Gross office absorption in top Indian cities has increased 26 per cent year-on-year to 36.4 million square feet between Jan-Sep 2018. Co-working space across top seven cities has increased sharply in 2018 (up to September), reaching 3.44 million square feet, compared to 1.11 million square feet for the same period in 2017.
Some Predictions For Future From Reliable Source-
- Global real estate market will universally rise in the near future.
- Huge expansion in opportunity.
- Fast growing cities will represent a wider range of risk and return opportunities.
- Technology innovation and sustainability will be the key drivers for value.
- Collaboration with government will become more essential.
- Competition for prime assets will increase further.
- A new and broader range of risks will arise.
Important findings -
- As compared to 2012, the real estate market will be grown by more than 55% till 2020.
- There will be rise in mega cities from 23 to 37 till 2025.
- Emerging markets will host 60% of the global construction activity till 2025.
Hindrances in the future of real estate-
- Builders are struggling in handover of the project.
- Black money is drained from the system.
- More investors than real buyers in the market.
- Job market is declining and becoming competitive.
- Junior level professionals cannot afford to invest in this high price market.
- Banks are facing default from builders.
“But a cut above the rest, the real estate’s business is going above and beyond”.
