Why investment in real estate is comparatively a better option than other forms of investment
August 26, 2017
The Indian real estate market is expected to touch US$ 180 billion by 2020. Indian Realty market size is expected to increase at a (CAGR) of 11.2 per cent. Retail, hospitality and commercial real estate are also growing significantly, providing the much-needed infrastructure for India’s growing needs.
The Indian real estate market is becoming a hot selling property and is attracting the attention of investors as they are getting huge profits and high returns on their investments. The real estate in India earlier was an unorganised industry with high transaction costs and an absence of complete transparency, but RERA and GST’s impact has brought transparency among builders and investors.
In August 2015, Govt of India approved 100 Smart City Projects in India. It also raised FDI limits for townships and settlements development projects to 100 per cent. Real estate projects within the Special Economic Zone (SEZ) are also permitted 100 per cent FDI. In Union Budget 2015-16, the government allocated US$ 3.72 billion for housing and urban development.
- Demand for residential properties has surged due to increased urbanisation and rising household income
- About 10 million people migrate to cities every year
- 35 per cent of the population is in young age bracket (15-35 years)
- Growing economy driving demand for commercial and retail space
- During April 2000 and March 2017, FDI inflows in construction development in India stood at US$ 24.29 billion and accounted for 8.4 per cent of total FDI inflows into the country
- The private equity investments in real estate increased 26 per cent to a nine year high of nearly US$ 6.01 billion in 2016.
- Growing requirements of space from sectors such as education and healthcare
- Growth in tourism providing opportunities in the hospitality sector
- In 2016, India secured 3rd position in the US Green Building Council (USGBC) annual ranking of the top 10 countries for LEED (Leadership in Energy and Environmental Design. This will generate attractive opportunities for companies to expand their portfolio
- The government has allowed FDI of up to 100 per cent for townships and settlements development projects
- Under the Housing For All scheme, 6 crore houses are to be built in which 4 crores in rural areas and 2 crores in urban area by 2022
- Real Estate Bill was passed in March 2016 to establish a real estate regulatory authority for regulating and promoting the sector
Seeing this current trend one can say that India is going in a right direction and soon more and more people will be coming forward to go for real estate investment property in India. India is a country that offers a suitable environment providing maximum benefits to the investors. With banks offering lower interest rates for home buyers. This will be the right time to invest in real estate and reap the rewards in mere future.
Apart from these factors, the RERA bill and the newly-introduced GST reforms have made investing in real estate even more beneficial. If you are planning to buy a new home, make sure you go through our detailed guide of taxes and duties payable for a hassle-free experience. Head out to Casagrand today and make the investment of a lifetime.