Indian real estate sector which is perhaps one of the most important parts of Indian economy is projected to reach $ 180 billion by 2020, as per the latest report by CREDAI and JLL India.
In 2015, the market size of realty sector was $126 billion which is expected to show a sharp rise in next 5 years. On the other hand, the contribution of housing segment to the Indian GDP is also expected to almost double to 11% by 2020 which means an up from estimated 5%-6%.
The report was released during CREDAI Conclave 2018. According to the report, expected key drivers which will lead to the growth in this sector are the various regulatory reforms by the government, steady demand in the sector through rapid urbanization, rising household income and the emergence of affordable housing and nuclear housing.
Ramesh Nair, CEO and Country Head, JLL India said, “Game-changing developments like RERA and GST have created a strong base for the sector to grow, which coupled with India’s strong economic advancement has provided a perfect springboard.”
The report also said that affordable housing is one factor which is gaining momentum in current time and it will rise in coming future only.
Two springboards RERA and GST
The CREDAI and JLL India report focused mainly on RERA and GST as the main catalyst of the Indian Realty sector. RERA act 2016, which has already shunted out many unscrupulous developers, is expected to improve and rebuild the trust deficit between buyers and builders.
On the other hand, the cost savings on account of the Goods and Services Tax (GST) is expected to between 3 to 4% in the near future as estimated by the development community. Prices will continue to remain dependent on demand and supply dynamics within micro-markets.
With all such game-changing measure taken by the Government, the Indian real estate sector will definitely move leaps and bounds in coming future.