The Indian real estate sector is poised to witness a major revival of sorts and the signs are already there. The Indian economy’s improved performance coupled with several major reforms have boosted investments in the realty sector. The realty sector attracted FDI cumulatively to the tune of $257 million in H1 2017. This is more than double of the cumulative FDI amount that was garnered for the entire year 2016.
These positive signs are majorly linked to policy changes like RERA bringing in greater transparency to the sector along with creating a more structured framework. There have been REIT (Real Estate Investment Trusts) amendments along with improved infrastructure which have drawn investors towards Indian real estate. The sector is more organized and accountability levels have increased hugely as per experts.
Private equity investments have already touched more than $5.9 billion in the year 2016 in comparison to $0.9 billion in the year 2013. This is a 6-fold increase for the entire period as per several reports. The sector has also drawn institutional investments touching in excess of $10.7 billion from the start of 2016 which is more than half of cumulative investments that were seen in this space from the year 2013 onwards.
As per reports, the Government has sanctioned more than 3.1 million housing units under the affordable housing category till November last year. Out of this tally, 1.6 million units are in various construction stages while 0.4 million homes have been constructed already. The PPP policy for affordable housing was declared on the 21st of September, 2017, for the affordable housing category in order to boost the Housing for All by 2022 scheme. The CLSS was also extended for covering the MIG segment from 1st January, 2017. Even real estate developers are gaining confidence about the prospects of an improved market in 2018 along with the immense potential in the Indian real estate sector.
