How Prepared is the Real Estate Sector in India for Growth?

Over the last few years, the real estate industry in India has witnessed several disruptions. At the end of 2016, the economy suffered from demonetization. Then came the crisis with the NBFCs. Finally, the pandemic dealt the final blow to the real estate industry in India, hampering supply and demand. Meanwhile, in 2016, the authorities introduced the RERA. These policies also posed challenges initially to the economy.

However, experts believe that the real estate industry is gradually recovering. The property prices and rates are finally rising, much to the comfort of the developers. So, it’s time to analyze how prepared the Indian real estate sector is for further growth. Here are certain aspects that call for focus.

Norms of the Government

In the last few years, the government has significantly focused on making properties affordable to the masses. Therefore, the authorities have introduced changes in the FSI (floor space index). Moreover, the government has come up with the ambitious drive for Housing for All. This has increased the demand for affordable homes, boosting liquidity in the real estate sector.

Additionally, real estate transactions gained transparency with RERA coming up in the last few years. Currently, investors have better confidence in the sector, given that RERA has come up with customer-oriented solutions.

The government has also arranged the SWAMIH fund, which has helped in reviving stalled projects. All of these aspects have strengthened the real estate industry significantly.

Streamlining Operations

Both the States and the Center have taken relevant measures to streamline the property transfer processes. Moreover, the approval process has turned out to be easy, considering the formalities like GST deployment. RERA has carefully scrutinized the proceedings, ensuring that the authorities can address the associated risks.

At the state level, some of the initiatives include moderating the ready reckoner rates and a cut in stamp duty. All these activities have been helping the real estate industry grow stronger.

Opportunity Areas

Before channeling funds into real estate, this is one of the most persistent questions that investors ask. Research reveals that new development hubs have come up in emerging cities. These include Vizag, Indore, Dehradun, Chandigarh, Surat, and Jaipur. People have a lot of opportunities in these cities. Therefore, the workforce is migrating to these places.

Altogether, the Indian real estate sector looks well-poised for growth. The coming years are likely to witness the industry boom.