Current Real estate situation in India

Current Real estate situation in India
The real estate sector has the second largest workforce in India, after agriculture and is expected to grow at a rate of 30% over the next decade, according to a research by IBEF. The real estate sector encompasses the housing sector, commercial, retail and hospitality and is influenced by various factors, primarily being the growth of industries and corporates. The housing sector alone contributes to 5-6% of the country’s GDP.
The recent times have seen a lot of changes for the real estate sector, some good, some not so good. Policies like demonetization, Real Estate Regulator Bill (RERA), GST, FDI relaxations, Prohibition of Benami Transactions Amendment Act and the changes in Accounting standards have all had an effect on the real estate sector India and oftentimes left the common man wondering whether this is a good time or a bad time for this industry.
A careful analysis of the situation currently and the predictions for the near future for the real estate industry only seems increasingly positive. All the above mentioned policy changes would mean increased transparency and credibility with only organized players surviving the market. The government’s ambition of increased home owners will also mean these changes have positive implications for the residential real estate market.
The setbacks that were witnessed as an immediate after effect of all the reforms are only temporary and most cities in India have already started seeing improvements. Real estate prices had been rapidly decreasing but seem to have bottomed out and stabilized in the cities. Fence sitters who were expecting a further decline in pricing have understood the situation now and getting back into the buyer’s market.
The clearing away of the unorganized segment in real estate in India is expected to create a High Demand, Low Supply situation, especially in the mid-market and affordable housing section. With the reduced interest rates for home loans and further reductions expected by the banks, demand for housing is going to see a rise.
Commercial and office real estate is also slated to grow owing to better connectivity and infrastructure in the cities.