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08 July, 2023
Although the global real estate industry has recently come under stress, there’s no stopping for the Indian realty sector. Amidst the conflict between Russia and Ukraine and other global disturbances, this sector in India has managed to sustain its growth. This has created a favourable investment opportunity for real estate investors, regardless of the international market conditions.
India has taken some strategic steps to mitigate the impact of global disturbances on its realty sector. These include some structural reforms in the last few years to attract FDI (foreign direct investment). This has significantly boosted the real estate sector. This industry has even overcome the impact of the pandemic.
Different policies of the government have fuelled a consistent growth in the real estate sector. Currently, India is poised as one of the fastest-growing global economies. The government has come up with tactics like GST implementation, and tax reforms, and made the real estate sector an investor-friendly avenue. This explains why the property market in India has been attracting investors like never before.
Economically, real estate is a sensitive sector. By 2030, it is estimated that it will be a $1 trillion industry. The growth of commercial real estate, retail, and hospitality segments has also been phenomenal. Thus, the real estate industry has been booming in recent years. In the first nine months of the last financial year, more than 1,700 acres of land deals have taken place in the top 8 cities in India. Between 2017 and 2021, FDI in the commercial real estate sector was around $10.3 billion.
Other factors leading to the consistent development of the real estate sector include initiatives of the government like the Pradhan Mantri Awas Yojana (PMAY). These measures have made homes affordable to buyers. Therefore, the Indian real estate sector attracts both domestic and foreign investors. It would be a logical decision for investors to channel their funds into the property market in India.