The Indian Real Estate has witnessed rapid growth with the rise in demand for office spaces as well as residential complexes and the market is expected to touch the milestone of US$180 Billion by the year 2020. The smart initiative was taken by the Government of India along with the state governments of various states of the country for the “Smart City” mission wherein the Government must build 100 smart cities has also proposed improvements in the real estate sector. Real Estate Investment Trust (REIT) has received a green flag from Securities and Exchange Board of India (SEBI) which would allow investors of all kinds to invest in the real estate market of India.
Expansion of sectors such as IT and ITeS, consulting, retail and e-commerce have demanded highest record for office spaces in Bengaluru during the year 2016-2017, followed by Mumbai and Delhi NCR. Mumbai has registered for the highest demand in the commercial real estate segment. According to Knight Frank’s Global House Price Index has reached the 9th position in Q2 2017 and now developers are more focused on an affordable and mid-range category to generate maximum demand from the Middle-Income Group and High-Income Group.
Indian real estate market will witness an upsurge in the market due to growth in tourism, urbanization, economy, epidemiological changes, policy support and easier financing. Many foreign companies are planning for a foray of new investments in the Indian real estate market due to huge potential and relaxed FDI norms.
The pusher of the real estate market in India is due to rapid urbanization. Real estate sector is expected to attract more NRI investment for both short-term and long-term period. The most beneficial paradigm shift in the sector is that from family-owned ones to the professionally managed ones. To meet the due diligence standards and to bring in more transparency, developers have revamped their management and accounting system.
A new and developing trend in the Indian real estate market is the demand for co-working space. The growth of start-ups in India has led to the this globally emerging trend which is found to be quite beneficial for the investors. With all such small and big investments done by investors across the globe, India is surely expected to climb the ladder of a growing real estate market.