The Indian economy has shown phenomenal resilience in the past one year, the last quarter has seen a growth rate of 7.9%, with an average yearly growth rate of 7.6% which is the highest in the world and has surpassed China; This at a time when rest of the world is going through an economic-slowdown; European countries are struggling to recover from a currency failure; The Chinese dragon has lost its steam in the last one year; Japanese Yen has been trying to maintain status quo; US economy is sitting on a time bomb, waiting for the presidential elections to get over; the fall in oil prices has affected the middle east countries and Russia.
This high growth rate has been achieved through some very strict economic discipline and hard selling. A number of policy changes at the government’s end; an investor friendly environment; a very matured, cautious and observant handling by the Central Bank (RBI); Some out of the box initiatives like Make in India, Skill India, Startup India and opening up of the Defence Sector; A very strong external affairs policy laced with economic agenda steered by the Prime Minister himself, have made this possible. However, the road is long and there are still a number of potholes which need to be filled.
Almost all sectors have picked up the development strings and are on a path of recovery. The real estate in India which has a very significant contribution of 7% towards the GDP is still dragging its feet (real estate contributes only 6% to its economy in US). As real estate is a labour intensive sector any slow-down affects the job availability in a huge manner, which further impacts the economic growth of the country; this cascading effect needs to be arrested if the Indian economy is looking at a strong revival. The real estate sector in India is expected to grow from US $93.8 Billion in 2014 to US $ 180 Billion by 2020, almost doubling its figures. The GDP contribution of the real estate sector in India is expected to be 13% by 2028. These are very healthy and encouraging figures, however these are only predictions and the real estate sector in India needs to ‘walk the talk’.
Under the housing for all scheme initiated by the government, 6 crore houses are to be built; 4 crores in rural areas and 2 crores in urban areas by 2022. This is a huge opportunity for the real estate sector in India, however the devil lies in the detail, as is evident the requirement is more in the rural than in the urban areas and therefore is a requirement to shift focus and the real estate sector in India needs to adopt a ‘push’ model instead of a ‘pull’ model, i.e. is to say, there is a requirement to reach out and build houses where the demand is there; rather than concentrating on urban areas and then hoping for the population to migrate.
Indians by nature are enterprising people and surely the real estate sector sees the opportunity; the growth of real estate website in India is not only important for the industry but also for the overall economy of the country.