The Narendra Modi Government is back with a bang and the next big thing to look is its impact particularly on the Indian real estate sector. The industry has come a long way from the last general elections as the reforms introduced in the past five years made the Indian property market an organized workplace. All this turned positive for both the developers and the prospects. So, here is what the Indian real estate can experience in the next five years.
The realty market is filled with hopes and aspirations. In fact, this time the issues like infrastructure investment, land acquisition and fast functioning of the RERA authorities will be in focus. Apart from this, many projects face delay due to environmental clearance and thus the Modi sarkar in its second term is likely to streamline the process of offering environment clearances to the new projects.
Another important issue that will impact the Indian real estate sector is the fast working of the RERA authority. The introduction of the Real Estate Regulatory Act and the process to setup tribunals of the same along with the launch of RERA web portal has created a hassle-free environment particularly for the homebuyers as they can put their word. The Indian real Estate sector will witness a huge change in deals and timely delivery of projects as the re-elected Government will work towards making the RERA and its working better in order to protect prospect’s interest.
The introduction of the real estate investment trust i.e. REIT is a revolution that will change the dynamics of the Indian real estate market. Also, the launch of REIT will reflect in the number of investments in the property market as not only the homebuyers but various industries are looking forward to invest here and this is a perfect platform to do so.
Expectations from FDI
According to a report, from 2009 to 2018 a total institutional investment stood at USD 30 billion. The Indian real estate market is going to have a positive impact as the FDI i.e. the foreign direct investment has grown twice the number of 2009. The FDI share stood at 70 percent in 2018 and it was merely 31% in 2009.
Impactful Implementation of Reforms
An intellectual has said that ideas are easy but implementation is hard. The reforms introduced by the Modi Government in the first tenure turned out to be positive for the Indian real estate sector and thus the expectation are high. Hence, the way to progress while conducting the buyers and the sellers smoothly via reforms such as RERA and GST is a big task on hand as it will leave a positive and extraordinary mark on the industry. The flawless extension of the reforms will also impact the economy as the increase in business means more job opportunities and high revenue collections.
Achieving Housing for All
The launch of PMAY i.e. the Pradhan Mantri Aawas Yojna in 2015 and the allocation of dwelling units to people in both rural and urban areas gave confidence to the people especially to those belonging to the economically weaker section. However, the Government has to balance the quality and quantity in its second term as the Indian real estate sector has benefitted with this scheme. The availability of affordable homes even in the major cities has boosted the property business and also allowed people to live respectfully.
Infrastructural development is an essential part of progress. Hence, the hassle-free connectivity in the next few years will impact the Indian real estate market at large. Both, the residential as well as the commercial projects having smooth connectivity will be the need of the hour in upcoming times.
Co-working and Start Up Culture
The introduction of MUDRA Yojna, Start-up India and Kaushal Bharat bought huge change in the realty sector. The increase in demand for seating at the co-working space and the acquisition of space for start-up companies gave the Indian property market a positive response. These things require more attention in the next five years as they all hold key to the flourishing Indian real estate sector.