All You Need To Know About India's Real Estate Sector

In this article, I’ve discussed in detail the real estate sector of India. Have a look!

The real estate sector is one of the most acknowledged sectors in India. It comprises 4 sub-sectors which include residential, commercial, hospitality, and retail. In terms of direct, indirect, and induced effects in the economy, India's construction industry ranks third among the 14 primary sectors.

In India, the real estate sector generates the second-highest number of jobs, only second to the agriculture sector. At present, the real estate sector contributes 6-7% to India’s total gross domestic product (GDP). And, it is estimated to contribute 10% to GDP and reach a market size of $1 trillion by 2030. It is a booming sector and can generate millions of jobs in the coming years.

The Indian real estate sector has seen immense growth in the last two decades with rising demand for residential and commercial spaces. The real estate developers build everything from housing societies to office spaces, industrial parks to hotels, and malls to hospitals. The development in sectors such as IT, ITes, hospitality, retail, entertainment, etc. has vastly contributed to the growth in the real estate sector in India.

Due to increased demand, the Indian real estate industry has seen phenomenal expansion recently. Growing population, migration to cities, rising income, increased job possibilities, and the rise in nuclear families are some of the factors that have influenced this growth. The country's largest real estate markets are in Mumbai, Bangalore, Delhi NCR, and Pune.

The Indian government has been supportive of the real estate industry. The Union Cabinet had approved 100 Smart City Projects in August 2015. In addition, the government has increased FDI (Foreign Direct Investment) limits for township and settlement development projects to 100%. The government has also allocated US$ 3.72 billion for housing and urban development in the Union Budget 2015-16.

The real estate projects that come under SEZ (Special Economic Zone) are also permitted for 100% FDI. Between April 2000 and March 2021, FDI in the sector (including construction development and activities) reached $50.8 billion.

Despite being the second-highest number of jobs creator in India after the agriculture sector – there are some challenges existed in the real estate sector. Some of the major challenges are incomplete and long-pending infrastructure projects, mostly of residential societies.

The root problem behind the delayed projects is improper planning, lack of funds, delay of approvals, lack of technological capabilities, etc. Also, due to the lack of a single-window clearance option in India, project approvals can take anywhere from days to years, resulting in time and expense overruns.

Other major challenges in the Indian market are lack of intent, lack of access to property registration data, low transparency in the buying and selling of property, and more.

However, the Government of India is trying its best to regularize and overcome all the challenges that existed in the real estate industry. For this, the Real Estate (Regulation and Development) Act was passed in parliament in 2016. The RERA Act is very helpful for home buyers as it protects their interests and also ensures timely delivery of projects.

There are many renowned real estate developers in India that are known for their top-quality work, reasonable price, customer trust, and timely possession & maintenance. One such property developer is TARC (The Anant Raj Corporation). TARC is one of the largest real estate development companies and land bank holders in the New Delhi Metropolitan Area. This renowned construction company develops a number of projects of Industrial Parks, Lifestyle Hubs, and Experimental Living which include logistics hubs, hotels, malls, residential complexes, commercial premises, resorts, and other infrastructure projects.

TARC (The Anant Raj Group) is one of the largest real estate development companies and land bank holders in the New Delhi Metropolitan Area. This renowned construction company develops a number of projects of Industrial Parks, Lifestyle Hubs, and Experimental Living which include logistics hubs, hotels, malls, residential complexes, commercial premises, resorts, and other infrastructure projects.

I hope you would like this article. Thanks for reading!