Current 2024 Real estate economy in India

Current Real estate economy in India

The real estate sector is one of the most globally recognized sectors. In India, real estate is the second largest employer after agriculture and is slated to grow at 30 per cent over the next decade. The Indian real estate market has become one of the most preferred destinations in the Asia Pacific as overseas funds accounted for more than 50 per cent of all investment activity in India in 2014, compared with just 26 per cent in 2013. The real estate sector comprises four sub sectors i.e housing, retail, hospitality, and commercial. The growth of this sector is well complemented by the growth of the corporate environment and the demand for office space as well as urban and semi-urban accommodations.

The Indian real estate sector has witnessed high growth in recent times with the rise in demand for office as well as residential spaces. Paramount Group is the renowned real estate company with a goal to create industry milestones. The company provides Luxury apartments and Studio Apartments in Noida and Delhi NCR. Highly committed to excellence, the company is associated with the world prominent architects for quality control and project management, which has helped the organization in developing some of the most lively and modern buildings of the times. According to data released by Department of Industrial Policy and Promotion (DIPP), the construction development sector in India has received Foreign Direct Investment (FDI) equity inflows to the tune of US$ 24.156 billion in the period April 2000-September 2015.

Some of the major investments in this sector are as follows:

Edelweiss Alternative Asset Advisors Ltd plans to raise US$ 1 billion for its first residential real estate fund called the Edelweiss Real Estate Fund, which will finance investments in five property markets in India – National Capital Region (NCR), Mumbai, Pune, Bengaluru and Chennai
Quikr, an online classifieds platform, has acquired real estate portal Commonfloor.com for US$ 200 million in a stock-cum-cash deal
Edelweiss Alternative Asset Advisors and Milestone Capital are investing Rs 7,200 crore (US$ 1.08 billion) in India’s real estate sector while private equity firms like Goldman Sachs, Warburg Pincus and Singapore’s GIC are exploring viable projects for investments, as a result of government’s effort to boost real estate sector
Google Capital has invested in Bengaluru-based online property search platform, CommonFloor.com

Government Initiatives :

The Government of India along with the governments of the respective states has taken several initiatives to encourage the development in the sector. The Smart City Project, where there is a plan to build 100 smart cities, is a prime opportunity for the real estate companies. Below are some of the other major Government Initiatives:

The Government of Rajasthan became the first state to initiate private investments in affordable housing by signing four Memoranda of Understanding (MoUs) with private players for an investment of Rs 5,400 crore (US$ 810 million)
The Ministry of Housing and Urban Poverty Alleviation (HUPA) has commissioned a study by Indian Institute of Technology, Kanpur on testing of new construction technologies, with the objective of promoting new housing technologies in the country
India’s Prime Minister Mr Narendra Modi approved the launch of Housing for All by 2022. Under the Sardar Patel Urban Housing Mission, 30 million houses will be built in India by 2022, mostly for the economically weaker sections and low-income groups, through public-private-partnership (PPP) and interest subsidy
The Government of India has relaxed the norms to allow Foreign Direct Investment (FDI) in the construction development sector. This move should boost affordable housing projects and smart cities across the country.