Real Estate Market in Independent India
August 2017

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After attaining freedom, seven decades back, Indian economy has seen a lot of changes. Many new cities have been added and they have expanded, both in terms of area and population. As more and more jobs were created in the cities, there emerged a huge demand for housing as well. When the economy opened up in 1991 and thereafter income levels increased, demand for homes providing amenities and facilities of international standards was created. Indian cities and towns today have projects catering to all segments – from affordable to luxury.

With multinational corporations setting shop in India, thanks to the Information Technology boom, there has been a constant demand for efficient corporate spaces. Due to Infotech- enabled businesses, e-commerce and a thriving start-up culture, this demand has increased further. High disposable income lead to the creation of malls and thus, modern retail spaces came up. Real estate sector has flourished over the years, side by side the booming economy of the country. Although, for a couple of years, real estate sector did see a lull period, yet now, with the Government formulating buyer-friendly laws and policies, real estate is expected to bounce back in the coming years. In fact, a turnaround is just round the corner.

  • Government has formulated certain laws that have been instrumental in enhancing the buyer’s trust in the real estate industry. RERA, especially, has cleared the sector of unreliable developers. As the law has to be strictly adhered to, only credible real estate players can now exist in the market.
  • For decades, India’s real estate market was held hostage by the builders. Today, however, the situation has completely changed. With laws in favour of the buyers, real estate is now experiencing transparency and accountability of international standards. Due to this, not only buyers, but both domestic and international investors are taking a keen interest in the sector.
  • Due to the Government’s demonetization move late last year, property prices in both primary and secondary markets have rationalized. This is bound to increase real estate sales.
  • The interests on home loans have become very attractive over time. The government and banks are ensuring that people take loans and invest in real estate, rather than keeping their money locked in fixed deposits. Competition amongst banks has further proved to be beneficial for the loan seekers.
  • The society has changed over the years. Women are educated and prefer working, especially in the cities. With dual-income at their disposal, home buying ability of families has increased manifold, affecting the sector in a positive way.
  • Real estate has indeed become a buyer’s market. There are so many developers and umpteen projects that buyers are spoilt for choice. Infrastructure development has opened up new locations and many new projects have come up in the suburbs of almost each and every Indian city.
  • Whether its buyers, sellers, brokers or other stakeholders, everyone today has access to a lot of information online pertaining to real estate. Location, amenities, apartment size, prices and other details of projects are available on real estate specific websites for everyone. That makes it very easy to compare projects and get the best price for a buyer. The builders become aware of the facilities offered by competitors.

Property buyers in India are experiencing and exercising their right of choice like never before. With “Housing for All by 2022” initiative, Government has made mass housing projects attractive for developers. With options and business opportunities like these, it would be correct to say that real estate sector in the country is poised for a huge growth in the future and customer will be the king.