Real Estate is an attractive asset worldwide. For a developing country like India, it is one of the pillars of the country’s economy, with agriculture being the second-highest generating industry.
According to statistics, the Indian real estate sector now contributes to 7% of the total GDP and will rise to 13% by 2025 if the reform plans are executed appropriately.Â
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Why Has The Real Estate Sector Grown Exponentially?
From an investment perspective, real estate is one of the highest profiting industries. After the weighing the advantages against disadvantages, investing in land presents minimal risk and high appreciation. COVID-19 also caused disruption in the market, shifting international investments from China to India. As we are entering the new normal post-COVID-19 phase, people are moving to new cities to find jobs, more influxes which is increasing the demand for residential and commercial properties, driving up the prices.Â
The real estate sector is the country’s second-biggest job creator. The government is offering home loans at a record low rate to promote domestic demand after observing that consumer sentiments had dropped during the lockdown. Combined with various favourable demand drivers, this encourages more domestic and foreign investors to rely on real estate growth. Let’s look at these generators of demand more carefully.
IT is India’s leading sector. International companies outsource their IT divisions to India owing to high level of skills and the low labour prices. In the recent decade, this has multiplied as more entrepreneurial talent and technological advances in the country have emerged. It is estimated that demand in the next five years will reach over 66 million cubic feet – which makes it highly likely that significant global corporations will spend money on constructing their hubs.
Also read: Checklist for NRIs Looking to Invest in Indian Real Estate
Homes as integrated personal areas
Owing a home is a dream that many Indians strive for. As the trend to work from home has become prominent, young professionals now consider their homes as more than just sleeping places. They are looking for additional space and a greater sense of aesthetic to set up a home office that can maximize productivity and build a wider social area for family connections and recreational activities. This has increased the desire for buying homes that can be customized by professionals as they like.
It’s no surprise AI and IoT are making its way into several homes in the form of smart devices and people are enjoying these modern technological solutions. The desire for intelligent households with interconnected devices, autonomous security systems, AI-powered temperature controls, and so forth has increased. Companies are also interested in intelligent properties for their office teams, shopfronts, warehouses, etc. In the end, a smart property has far more value than an ordinary property.Â
Digitally empowered real estate agents
Agents are conducting virtual home tours to allow homeowners explore properties safely. Furthermore, IT software and cloud-based office configurations are making it easy for agents to interact with the rest of the team rom any location, thus enabling them to become more aware and to discuss groups more effectively. In general, agents can conduct their tasks more effectively while improving digital literacy, allowing more closures.
Also Read: How to Earn NRI Rental Income?
Why invest now?
After the market dip created by the pandemic, several industries are opening up to allow consumers to fulfil their needs. As property prices have not reached their peaks yet, this post-pandemic phase is the right time for investors to buy properties at comparatively lower prices.Â
Indian Real estate – futuristic view
To enable all kinds of investors to participate in the Indian real estate market, the Securities and Exchange Board of India (SEBI) has agreed with Real Estate Investment Trust Platform (REIT). It was the most notable change that took place for family-owned and commercially managed enterprises. Real estate developers have invested in centralized processes for the supply of procurement materials, coordinating the workforce and recruiting qualified project managers, architects, and engineers to fulfil the growing requirement for different projects across cities. Â
Finally, although the demand of consumers was affected by the pandemic, technological innovation and increased investments rejuvenated the interest in property purchases. With the rise of properties, there is a huge potential for both industry-related growth and broader economic growth, because backward and forward relationships increase the auxiliary sectors. Therefore, in the coming years, we can expect significant advancements.Â
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