Very obvious Real Estate sector has been the roots of the Indian Economy and has contributed immensely. And it is even evident from the fact that Real Estate Sector contributed 8.53 % of the total GDP and also witnessed a growth rate of 30%.
And it’s also significant to note that this sector has emerged as the fifth biggest destination of foreign investment. The approach the Real Estate Builders are carrying has changed the face of India from being under-development country an rising edge by developing state of art infrastructure, buildings, townships and shopping mall, interesting only in urban towns of the country but also in Tier 2 and 3 towns as well.
Another important factor that cannot be denied, the efforts of the renowned builder has not only developed the India, but has been providing sustenance to 250 ancillary industries. This sector is the second largest employment generator in the economy, where the top five real estate players employ more than 2,00,000 employees at different locations and even being the highest employer to the BPL families.
The wide change in the buyers mood is witnessed, rather living on the rent house,they prefer to own their own home and this accelerates the demand of residential sector and as far as commercial property is concerned, it is also growing at fast pace and this has widen the scope for businessmen etc. Going ahead, there is a storage of approximately 27 million dwelling units at present and the Indian Real Estate business which is expected at USD 15 billion which is likely to be around 90 billion by 2015, predicts ASSOCHAM.
Moreover, the housing starts up index, presently at pilot stage, exemplifies that new housing units in cities such as Chennai, Bangalore, Kolkata are showing lesser growth that the tier 2 and 3 cities like Patna, Indore and Lucknow etc.
And as per the latest Knight Frank Report, since last 2-3 months the Indian economy has observed improvement in all economic parameters be it IIP, imports, CAD and Inflation, though, its high GDP growth levels, Job creation primarily depends on the labour intensive manufacturing sector which in turn depend on the investment in this sector.And fresh investments in the economy have been surpassed by the upcoming general election.
In this current scenario where the rupee is still on the upper side, inflation is yet to reach at a stable stage and the Indian financial system is caught amidst liquidity trap, we developer can not meet the escalating demand from customers without the government support and thus in order to meet the growing demand, we actually require the support of government by relaxation of norms to aid the growth of the Indian real estate sector. RBI should also intervene by trimming down Bank repo rates to another 100-200 basis points and to further diminish CRR in order to infuse additional liquidity in the cash staved market.The government should facilitates the efforts of the real estate developer by offering them minimum infrastructure guarantee under habitation policy, easy guidelines on foreign investing in Indian Realty, trimming risk weightage and by giving the sector industry status coupled with reduction and uniformity in stamp duty.
So it is my belief that our continued growth driven strategies and activities coupled with due attention and aid from bank, bureaucrats and all government and would be playing key role in taking the Indian economy to the next stage.
