Aspate of construction activities, backed by the governments push for affordable housing and infrastructuregrowth, is indicating the revival of Indias real estate sector. The sector is witnessing high growth with the rise in demand for office, as well as, residential spaces. The market size of the Indian real estate sector is expected to reach $180 billion by 2020 with the housing sector's contribution doubling to 11.2% of the GDP.
Policy push
The country’s real estate industry is in the midst of a major transformation. Home buyers and home developers are looking forward to a great year in 2018. The previous year was a rollercoaster for the sector with too many things happening. The effect of demonetisation was still visible in 2017. The Union Budget 2017-18 introduced the “Housing for All by 2022”policy, which came with a number of benefits like availability of prime land parcels, access to funds, and fast approvals for incentivising affordable housing projects.
The government later introduced the Real Estate Regulatory Act (RERA) to bring transparency between buyers and sellers. This Act raised the interests of home buyers and confidence among the consumers. Mandatory registration, strong penalties, and complete transparency are some of the key features of RERA. The introduction of the Goods and Services Tax (GST) aimed at dismantling the multiple tax system, has helped to improve the sentiment of foreign investors.
A Credit Linked Subsidy Scheme (CLSS) for the mid-income group with a provision of 1,000 crore in 2017-18 was announced even before Budget 2017-18. Extension of tenure of loans under the CLSS of Pradhan Mantri Awas Yojana (PMAY) was increased from 15 to 20 years, and the Budget also increased allocation to PMAY from 15,000 crore to 23,000 crore in the rural areas.
Backed by these policy changes, 2018 has begun with a lot of promises. The introduction of Real Estate Investment Trust (REIT) and the possibility of receiving Private Equity (PE) investment have eased out the financial needs of the sector. Private equity investments in Indian real estate increased 15% year-on-year in January-March 2018 to 16,530 crore. Private equity investments in real estate are estimated to grow to $100 billion by 2026 with tier-1 and tier-2 cities being the prime beneficiaries.
Diese Geschichte stammt aus der October 1 - 15, 2018-Ausgabe von BUSINESS ECONOMICS.
Starten Sie Ihre 7-tägige kostenlose Testversion von Magzter GOLD, um auf Tausende kuratierte Premium-Storys sowie über 8.000 Zeitschriften und Zeitungen zuzugreifen.
Bereits Abonnent ? Anmelden
Diese Geschichte stammt aus der October 1 - 15, 2018-Ausgabe von BUSINESS ECONOMICS.
Starten Sie Ihre 7-tägige kostenlose Testversion von Magzter GOLD, um auf Tausende kuratierte Premium-Storys sowie über 8.000 Zeitschriften und Zeitungen zuzugreifen.
Bereits Abonnent? Anmelden
Bank of Baroda, Kolkata Zone organised Mega Kisan Melas in West Bengal
Bank of Baroda (BOB) organised Mega Kisan Mela at Konkalitala in Birbhum District of West Bengal on November 18, 2024 as a part of the 7th Edition of the Baroda Kisan Pakhwada (BKP).
Time-Bound Disposal of Cases to Expedite the Delivery of Justice and affordabe by all in India
The delay in the disposal of cases in Indian courts remains a significant hurdle to the nation's progress.
Dev Deepawali: A grand celebration of light, spirituality, and culture in Varanasi
The holy city of Varanasi, often regarded as India's spiritual and cultural heart, came alive with the splendor of Dev Deepawali on the sacred day of Kartik Purnima.
The life of Job 'Ye judge not the judgment of God' - Jesus Christ
The Holy Bible reveals through the life of Job how the Lord tests the righteous and that faith helps one to overcome life's adversities.
India has the highest potential for the garment industry, only a conducive government policy is required.
India's textile industry is poised for remarkable growth, with expectations to double its contribution to the GDP within the next six to seven years.
Global Public Debt may be worse than it appears, warns IMF
Global Public Debt Set to Exceed $100 Trillion, Warns IMF
The economic consequences of Trump's Presidency: A global perspective
One of the key economic factors contributing to the Democrats' loss in the US elections was the significant rise in inflation, which was initially triggered by the COVID-19 pandemic and exacerbated by the Russia-Ukraine war.
Challenges and Successes in West Bengal's Education Sector: A Comprehensive Overview
The education system in West Bengal, particularly in districts, villages, slums, and government institutions, reflects a blend of progress and ongoing challenges.
What India can expect from Trump's return
I may be too early to predict how Donald Trump's second term as president will impact the global oil market.
Stocks Surge Following Donald Trump's Election as 47th President of the USA
Stocks soared following the election of Donald Trump as the 47th President of the United States. Investors anticipated that the Information Technology (IT) sector would benefit from lower corporate taxes under the Republican regime, with IT stocks leading the rally.
