Real Estate Sector Growth:
Real estate sector is one of the fastest growing sectors in India. As per the recent reports published by the Reserve Bank of India (RBI), the Indian real estate market grew at a rate of 12% in 2016, compared to 10% in 2015. According to RBI data, the value of residential property transactions increased by 9.8% in 2016, while commercial property transactions rose by 13.9%. These numbers show that the real estate sector is expected to continue its upward trajectory in 2017.
Affordable housing is becoming increasingly popular among young people who want to settle down and start families. In order to meet the demand for affordable housing, developers have started building apartments and houses that are priced below Rs. 30 lakh. Many builders have also launched projects with prices ranging between Rs. 20-30 lakh.
Urbanisation is one of the major factors driving the real estate industry in India. According to the Census 2011, urban population accounted for about 52% of the total population in India. By 2021, this number is estimated to increase to 60%. As per the report, the urban population is projected to reach 543 million by then.
Infrastructure development is one of the primary drivers of the real estate market in India. The government has been focusing on infrastructure development, especially in rural areas. To boost investment in infrastructure, the central government has recently announced several incentives for investors.
Demand Driven Pricing:
The real estate market in India is largely driven by demand. Developers are thus forced to offer competitive rates to attract buyers. However, high land costs and lack of transparency remain some of the biggest challenges facing the real estate sector.