Over the last few years, India has witnessed significant growth in its second largest employing sector i.e. Real estate. Statistics trends reveals that this sector is mainly divided into 4 main categories housing, retail, commercial and hospitality industries. Out of all four sectors, commercial properties stands to be one of the top in terms of investment. Apart from metropolitan cities like Bangalore, Pune, Chennai and Delhi, some of the tier II cities like Mohali, Chandigarh, Indore, Kochi, Ahmedabad etc is also witnessing positive sentiments.
Factors that have been instrumental in the boom of real estate segment.
Smart City Projects:
After the approval from government for 100 smart city projects, one can see remarkable growth potential in tier II and tier III cities. The scope of development in different cities has increased the options for investors.
Hike in FDI limits:
Government has increased FDI limits in real estate market especially for settlement development projects and townships to 100%. Consequently, there has been a steady growth in NRI investments for both short term as well as long term. According to DIPP surveyed data, FDI inflows have reached 24.91 billion USD from 2000 to 2018 in real estate sector, which evidently show their financial interest.
- Rise in Institutional investment:
Private equity, Venture Capitalists etc have been making whopping investments in real estate segment. From January to March 2019, the investment has reached to 546 million USD whereas institutional investment has grown up to 30 billion USD.
- Overall growth:
Economic growth in the country has led to industrial and infrastructural developments that has contributed in the overall boom of real estate in India.
Tier 2 cities are also luring a good amount of traction when it comes to real estate investment. This is because many reputed builders have shifted their focus to these cities and are coming up with many state of the art residential and commercial projects. Amongst many other tier 2 cities, Mohali in Punjab is one such place that has successfully captured the interest of many real estate developers and investors due to its infrastructural growth, clean environment and green surroundings. Wave Estate in Mohali is one of a kind that is designed meticulously to provide the best amenities and quality lifestyle to its residents. It offers round the clock security, 24 hours power back, gym, swimming pool, supermarket and green spaces in the integrated township projects. Strategically located, this project offers a great connectivity. Investors can fetch promising returns in near future.
The growth in real estate market has widely impacted real estate companies at large. They can foresee a 13% CAGR in next 5 years, which give them a chance to manage projects in cities all around the country. They envisage the demands for residential and commercial projects in coming future and are all set to face new challenges. With that in mind, they are seeking ways to maximize returns and not compromising in quality of construction. A golden time awaits for the developers, investors, buyers and builders in real estate. The dynamics of realty market is expected to change in the coming time with more scope of profitability.
