Since the advent of real estate sector in India, it has not only witnessed a strong economic growth but also the enhancement in physical infrastructure of the country. Even in 2016, it continues to impress people with innovative ideas and a feeling of owning something valuable. When we talk about residential properties, things that come to mind are space and value associated with it. The only concern of a buyer spending money is to find a residence that is proudly owned by them and that is also in a plush neighborhood.
How it all started?
As huge numbers of people are shifting into the urban areas, demand for high-end apartments has been on a rise. Competing with global economy, current state of Real estate in India is expected to grow exponentially within the next five years. According to a research report by CRISIL, the period of 2014-2018 is expected to witness substantial supply of housing, especially in urban areas.
During early years of its introduction, real estate was mistaken with gambling of money among investors. However, with passage of time the old school methods and notion has changed and the business picked up quite well after a few pitfalls. In order to attract potential buyers, new mid-income housing projects were also launched after people started showing interest.
Growing demands + Growing challenges
It is well known that almost 80 percent of the real estate sector in India comprised of residential properties. The concept has come to existence since the time families started buying houses that were within their budget and provided a great environment for their children to grow. Housing section of the country is broadly divided into three segments-
- Affordable housing
- Mid-income housing
- Luxury housing
Luxury housing segment in particular is capable of projecting strong economic growth in urban areas. It is because developers understand various needs of contemporary buyers and are now collaborating with some renowned luxury brands to increase ownership. Through these partnerships, they are able to develop service apartments and grand luxury villas.
With above backdrop, it is quite evident that real estate market is going to become a major source of economy for the country. Government’s role in this development is crucial as it is now their turn to monetize and regularize the process of construction. It would not be wrong to say that adequate urban development process is taken into consideration; therefore, the results are now in front of the people.
A massive gap still exists in the lack of technology and funding of real estate sector for which several initiatives have been lined up to improve the global money inflow. Among these setbacks, there are also land related problems that are not slowing down. Although, digitizing the land ownership records has helped immensely, there is still a long way to go.
While comparing early stages of properties in India with the present situation makes it easy to understand that India’s economic growth is somehow linked with it. Making new projects luxurious and eye catchy can be a real treat for Indian developers as it starts bringing investors from different regions of the world.