With the Indian economy becoming a global force to reckon
with, the real estate sector in India has witnessed a tremendous boom. Thanks
to investor-friendly policies and globalization, the Real estate property in india
of the country has emerged as one of the most lucrative segments for investors
and developers. The sector contributes approximately 6.3% to India's GDP.
Ever developing infrastructure, rapid urbanization, higher
income levels and greater housing demand have driven the growth of this
all-important sector. It is estimated that the sector will post revenues worth
US$ 180 billion by 2020 as against US$ 66.8 billion in 2010-11.
Real Estate Companies in India
India is the home of many real estate developers. DLF,
Jaypee Infratech Ltd, Tata Housing Development Company and Godrej Properties
are some of the major domestic players in the industry. International players
who have made a mark in India are Emaar Properties, Portman Holdings, Tishman
Speyer and Homex.
According to a report released by Ernst & Young (EY) and
Federation of Indian Chambers of Commerce and Industry (FICCI), the sector
would require an investment of US$ 257 billion by 2015. The report further
stated that the sector is expected to generate over 17 million employment
opportunities by 2025. Industry players are all set to gain a global
competitive edge with Indian economy ready to experiment with Real Estate
Investment Trusts (REITs), an advanced funding option.
There are immense Investment opportunities in the sector as
the International Monetary Fund (IMF) expects the country's retail realty
sector to grow at the rate of around 15% on a year-on-year (y-o-y) basis, over
the next 3-5 years. As per a report released by Knight Frank India, India's
office stock is estimated to touch 642.2 million square feet by 2017. Several
leading firms have planned huge investments for the future, which will further
bolster the growth of the sector.
Government Initiatives
The real estate market of India has also benefitted from
several policies and schemes announced by the Government of India (GoI). 100%
FDI policy in the construction development sector through automatic route is a
healthy step taken in this direction. Many states have repealed the Urban Land
Ceiling and Regulation Act (ULCRA), which had a huge bearing on urban
development. The Reserve Bank of India (RBI) has given banks the authority to
come out with new schemes for the development of the sector.
The Real Estate Bill, 2013, which was tabled in the monsoon
session of the Parliament aims to set up a regulatory body to guard consumers
and promote the sector. It is believed that setting up of the regulatory body
will address disputes and improve the image of the industry, which has taken a
beating in the past few years amid reports of forgery by developers.
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