The property market in India is considered to be one of the trickiest yet profitable investments. The industry is driving this business from global investors as well who have started taking keen interest in the country’s expansion process. Once known to be a saturated market, realty industry as revived itself with much-needed regulatory reforms and the aftermaths of it. Further, the residential property market has garnered much attention because of the rising urbanization in metro cities and affordable housing options that are presented in front of the investors. Since the past few years, the housing segment of India is also under reeling pressure as this is one such sector, which is expected to revitalize the existing and previous performance of real estate in India.
Largely linked to the economic output of the country, Indian real estate sector has a lot to contribute to the industry. Before continuing any further, it is crucial to go through the contributing factors of the residential real estate industry of India.
- Rising incomes in commercial sector
People who have moved to bigger cities in search for better employment opportunities are doing so because of various appealing income offers. As compared to small cities and towns, metropolitan locations are more advanced and capable of providing better incomes to people who aspire for it. Also famous for being one of the most consistent economies of the world, India’s real estate future looks bright and hopeful with enhanced income options.
- Growing nuclear families
People who are shifting their base to urban cities are doing so in order to establish themselves as nuclear families. Job seekers who are trying to find prospects in metro cities are finding many options these days, which is giving birth to smaller families. This in turn is giving rise to new projects in the housing sector making it a favorite among investors.
- Growth in service & IT sector
IT/ITeS segment of urbanization has a major role to play in increasing employment opportunities across India. Just as this sector is expanding, there is also a need for affordable housing options to accommodate people who are shifting their base to big cities. Depending upon the incomes, investors are also considering buying luxury properties in India, which includes lush penthouses with sprawling townships. Therefore, it is observed that the sudden growth in IT industry is directly impacting the housing industry of the country.
Need for more residential development
Housing is one such segment where demands are always evolving with the increase in population of the country. However, there are several constraints landing up while finalizing new projects such as unsuitable land areas for a specific kind of building. Moreover, there are also uncertain pricing structures accounting to the fact that prices of a property can change at any given point of time. Also, the need of adequate funding channels is spreading out and impacting the final decision of the developers who need regular flow of cash for their new projects. Having realized these requirements and shortcomings of the process of urbanization, government has now stepped forward and taken initiatives to ensure smooth sailing in this industry. Now what’s more interesting to see is the fact that in spite of all these challenges, the country steps forward with sufficient manpower & technology to overcome the above mentioned deficiencies.