How To Study The Real Estate Market Of India?

If you are about to invest something in the real estate then you should make this very clear that you know a few things about the entire thing. The real estate is not just a business that makes people get their hands on the best property in the area but it also helps you to know when the right time to invest in property is.

Things That You Should Know About Real Estate

The real estate sector is one of the most globally recognized sectors. Real estate sector basically comprises four sub-sectors – housing, retail, hospitality, and commercial. The growth of this sector is well complemented by the growth of the corporate environment and the demand for office space as well as urban and semi-urban accommodations. The construction industry ranks third among the 14 major sectors in terms of direct, indirect and induced effects in all sectors of the economy.Real estate sector in India is expected to reach a market size which would be near about $1 trillion but the end of the year 2030. And this figure will be reached from a mere $120 billion in the past year. It is also analyzed that the real estate will contribute up to 13% of the complete GDP of the country by the year 2025. Retail, hospitality and commercial real estate are also growing significantly and fast, providing the much-needed infrastructure for India’s growing needs as well as for India to grow.

The IT sector, retail, consulting and e-commerce have registered high demanding has recently demanded office space. Above everything, around 600 million square feet by 2018 end has expected crossed of a commercial office. According to certain research Gross office absorption in top Indian cities has increased 26 percent year-on-year to 36.4 million square feet between Jan to Sep 2018. Co-working space across the top seven cities of the country has increased sharply in 2018 (up to September), reaching 3.44 million square feet, compared to 1.11 million square feet for the same period in 2017.

The Indian real estate sector has recently witnessed high growth inrecent times with the rise in demand for office as well as residential spaces. There are some major initiatives taken by the government in order to facilitate housing or spaces to people of the country. The smart city projects initiatives taken by the government. The transparency level has been increased drastically after the increase in the rate of flow of FDI into the real estate world.

What Would Be The Future Of Commercial And Retail Real Estate Especially In India?

Real estate and particularly the commercial real estate is led by FDI and is expected to be on a positive phase these days from a long time no doubt. The recent reforms introduced by the government of the country brings in the transparency and thus, more confidence in the real estate sector in India can be seen or being seen. Our GDP is improving day by day if we compare it from past days. All these things will result in better economy of India and we know it very well that a better and stronger Indian economy will in turn boost sectors like e-commerce, start-ups leading to demand in real estate led by logistics, warehousing, etc. A better performing Indian economy also means more activity in retail.

Hence, the reason to believe that there will be strong growth in the commercial real estate sector increases to the level high. Consider this that the commercial real estate segment outshined the residential segment both in terms of the valueof money and volume in the second quarter of 2018. The value of commercial segment stood around at $766 million and residential $34 million in the same period. If you want to know more about the property for sale in India then check it out on PlanMyProperty.

What Are The Housing Schemes Launched By The Government?

2. Prime Minister AwasYojana (PMAY) Urban
   Basically, this particular yojana was Introduced in 2015, The Pradhan MantriAwasYojana (PMAY) Urban scheme was launched by Central Government that wish to provide Housing for All in urban areas by the end of 2022. This scheme is implemented across various financial institutions. PMAY provides central assistance for all eligible families across the nation. Majorly this scheme is classified on the basis of annual income and size of the house including the number of people living in a house. In this, there is some feature that may include families that may get interested subsidies on their home loan based on their income category. Secondly, the amount can be taken up in order to renovate the current Kucha house or semi-pakka house to full, proper housing. This is also known to be the affordable housing scheme of India.
3. External Commercial Borrowing (ECB)
   From 2012, External Commercial Borrowing has been allowed for affordable housing projects. These borrowings are permitted to enable lower interest cost for developers and confirmed improved capital availability for developers of low-cost housing. Under this particular scheme,Most of these loans are provided by foreign commercial banks and other institutions. During the year 2012, the contribution of ECBs was between 20 to 35 percent of the total capital flows into India.  You know a large number of Indian corporate and PSUs have used the ECB as a source of investment. For infrastructural or for greenfield projects funding up to 50% is allowed by the government. And for non-banking finance companies classified as an infrastructure finance company, the ECB limits were raised high by the Reserve Bank of India from around 50% to straight 75%.

About the Author:

Recommended For You:

Tips For Saving Money On Freight Shipping INFOGRAPHICS

Simran Kaur is a well known copyrighter who loves to write on shopping, real estate, education and product reviews. Being a real estate blogger, she is also handling PlanMyProperty.in, a website for properties around the country. She eagerly awaits for right travel opportunity and captures her experience in words and publish it with partner blogger friends.

Find Me On LinkedIn