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| PM Modi |
Role Of Real Estate
Industry In The Growth OF Indian Economy
The real estate industry in India has been contributing towards the
overall economic growth of the nation in a significant manner. Over the past,
couple of decades the phenomenal growth of real estate sector across the length
and breadth of India has been seen as direct consequence of the enhanced buying
and spending capacity of the common people. In addition, the breaking up of the
joint family system due to various reasons has also created a huge demand for
residential and commercial spaces to accommodate the smaller nuclear families.
In fact, India is amongst the few nations, where the real estate market did not
suffer a major setback even during the darkest phase of recession.
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| All Images used for illustration purposes only. |
New Government, New
Expectations
Sadly, over the past few years an unusual lull had been seen in the
real estate sector as well. Most people blame the wrong policies, inefficiency
and weak governance of the previous central government for the reduced growth
rate in construction business. However, with the phenomenal win of Mr. Modi and
him forming the government at the centre, the real estate big wigs have become
hopeful that the industry will be revived from its downward spiral and will
once again play a critical role in building a national growth and development.
The positive attitude and the optimistic approach of the Modi government
towards ensuring greater economic progress are being seen by the major players
in the real estate industry as the signs of a better and progressive future not
only for this specific sector but for the nation as a whole.
With infrastructure development and homes for everyone being one of
the top priorities of the Modi government, the expectations of growth of real estate
sector is being considered quite natural. In fact, the new government has
already started taking several measures to ensure that the funding for this
specific sector can be organized in an easy and hassle free manner. At the same
time the real estate developers are also revamping their systems and policies
to meet the changing needs of their clients while also playing a constructive
role in helping the new government fulfill its promises.
Modi’s US Visit – First
Step towards Turning Dreams into Reality
During his recent visit to the United States of America, PM Narendra
Modi gave positive indications about enhancing growth and development in various
sectors including real estate in India. In addition to highlighting and
promoting the concept of “Make in India”, the PM also appealed to the NRI to
invest in real estate in India in a big way. The fact that the real estate
sector contributes towards nearly 10% of India’s GDP as well as the need for
over USD 650 billion in terms of investment in this sector is being seen as a
prominent reason behind PM Narendra Modi’s appeal.
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| All Images used for illustration purposes only. |
In order to motivate the NRI’s to make investments in the real
estate sector, the Modi government plans to permit 1005% FDI automatically for
construction of townships and cities. For comprehensive infrastructure
development in India a total investment amount of USD 1,000 billion will be
required by the end of 2017. The government also made it clear that 45% of these
funds will be used for different construction activities. It is also projected
that the real estate sector in the country will grow to have a value of nearly USD
140 billion, which is almost twice the value the industry had by the end of
2013.
Scope Of Real Estate Growth In India
According
to an estimate, India currently faces a shortage of nearly 18.8 million
residential units. In addition, the current infrastructure is not capable of
meeting the growing demands of the increasing urban population. The need to
re-organize the existing cities and urban centers as well as create new, all
inclusive smart cities to meet the lifestyle needs of the modern population. In
order for sustained growth and development, the real estate sector is
increasingly adapting smart construction and development policies by working
closely with foreign players and private investors.
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| Real Estate Growth In India All Images used for illustration purposes only. |
At the same time the real estate developers are
focusing on providing affordable residential spaces that are Eco-friendly and
sustainable. In addition, the property developers have also begun to understand
the importance of combining technology and latest construction methodologies to
build self sustaining smart cities and integrated townships that can easily
appeal to NRI’s and other foreign investors as a profitable option. Most
importantly, the government is working on various policies and laws to create
greater transparency and efficiency for encouraging investment in the real
estate sector in a hassle free manner.
The Benefits of Real Estate Investment
In India
A
major highlight of PM Narendra Modi’s US visit was to project India as a land
of enormous opportunities especially in the real estate sector. With the
construction and infrastructure needs of the nation growing at a rapid pace,
NRI’s and other foreign investors investing in real estate in the country are
sure to gin big time with even a small investment. Furthermore the
encouragement and support offered by the government not only in terms of both
easy investment policies and financial assistance is also bound to attract
investors in large numbers.
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| Real Estate All Images used for illustration purposes only. |
The
real estate sector in India offers wide range of investment opportunities for
people from diverse backgrounds. The statement made by PM Modi about providing
a home to every family by 2020, is being considered by the pundits in the real
estate sector as the indicator of the growth and development plan of the new
government. This single statement combined with the numerous positive steps
taken by the government, including the launching of the urban development
mission, has laid the path for significant growth of the real estate sector
across the nation. The boom in property market is all set to take the nation
further enhance the GDP growth of the nation and contribute in significant
manner towards making India an economic superpower on a global level.
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