As per reports, real estate in India is steadily shifting towards future growth and things are quite positive for the sector at present. There is increasing construction activity throughout the country spurred by the emphasis of the Government on affordable housing and infrastructural development. The current scenario clearly indicates a revival of the sector in the future and it has received handsome investments for the first 6 months of 2018.
As per reports, the period between January and June 2018 saw institutional investments coming in to the tune of $3, 616 million or a whopping Rs. 24, 011 crore into India’s real estate sector. Out of this, a large chunk was invested in the IT and business sectors which garnered almost Rs. 13, 151 crore or roughly $2, 000 million in investments. The retail segment garnered Rs. 1, 898 crore or approximately $300 million. Institutional investments made in Indian real estate increased between 2013-2017 at 63% CAGR (compounded annual growth rate) to stand at $20, 971 million cumulatively by the end of last year as per reports.
The realty sector is seeing positive headwinds with the Housing for All by 2022 mission of the Central Government and development of infrastructure across the country. This is enabling better access to peripheral zones near key cities where new-age Smart Cities will soon be developed. The Mumbai Trans-Harbour Link is a good example since it will make a big portion of land available across the harbour as an extension of the prime South Mumbai market. The Indian realty market is now steadily moving towards more affordable pricing levels according to experts.
There is now higher demand for both residential and commercial real estate and improved FDI (foreign direct investment) in the sector as well. With measures like RERA, confidence and sentiments of buyers have also improved hugely and the stability in capital values will drive positive growth in the near future according to experts. The sector is now more transparent and is firmly on the growth path as per studies and other reports.