Greater Mumbai, Maharashtra | It is also called as Mumbai metropolitan region, consisting of nine municipal corporations. It has been developed over the past 20 years. The region is the third best city in terms of livability parameters, despite continuous issues it faces due to rapid urbanisation. (Image: Reuters)
On this 72nd Independence Day, Indian real estate sector has travelled through a remarkable journey after independence. The rise of the Indian real estate sector with a major system reboot under policy transformation holds a bright future.
The success story of Indian real estate sector can be scripted to the slew of policy reforms, thrust on mega infrastructure development, Housing for All and affordable housing initiatives, liberalisation with FDI policy and job creation. The pace of economic growth rate of India is levelling up under the favourable economic environments, wherein Indian real estate market and an investment destination hold a lot of potential, promise and excitement.
If one were to take into account the changes the sector has gone through right from the Independence era to the current day, there has been a radical shift in demand-supply dynamics. The biggest change is the sheer choice of product range that is available to the buyer and the ease at which one can buy a real estate product.
Consider that in the late 1950s and 1960s; most housing options came from the different government schemes or landlord-owned buildings that offered homes on rent. The huge demand, less supply ratio was the equations which lead to real estate gradually turning into not just an end-user driven market, but also created an investor class.
In the 1970s and 1980s, private sector real estate developers made their presence felt, with homes on offer at various locations and even in peripheral areas/ extended suburbs. At the turn of the Millennium, real estate options included not just residential and commercial, but also retail and warehousing. Present-day, the repertoire includes co-working spaces, student housing and investing in homes abroad.
Looking ahead from this Independence Day, the future of real estate in India promises to be better, as compared to the scenario during Independence Days in the past. Real estate is an attractive asset from the both domestic as well as global buyers’ perspective. With the major fundamental make-over in terms of policies, operations, technology disruptions, and new emerging asset class options will surely foster the growth of real estate sector in the long run.
The government’s initiatives, like ‘Housing for All by 2022’ and Pradhan Mantri Awas Yojana (PMAY) will prove to be a game-changer, while the focus on Affordable Housing will ensure home seekers get to make their dream homes into reality. New infrastructure framework which is being created across the nation will enable substantial growth of housing in the urban metropolitan as well as undiscovered peripheral city centers.
Also, we shall witness the building of smart cities to tap the technology disruption aimed to offer the better standard of living. With the new policies like RERA, we will see the regular creation of housing stock in a timely manner and within the compliance friendly mechanism. The ‘One Nation, One Tax’ formula with the introduction of GST will establish universal tax pattern across the nation. This positive scenario follows the new regulatory regime which will enhance transparency and accountability in the sector.
The main objective of India’s development strategy has been inclined towards economic growth and self-reliance. These objectives would be achieved by the progression of urbanisation and generating perennial employment opportunities.
Urbanisation is the key for the magnitude of growth estimated in the Indian housing sector. The focus is now on enhancing new decentralized commercial growth centers across the suburbs and peripheral city centers so that jobs are created, an economic shift takes place, connectivity is built up and demand for real estate gets a fillip. All these structural changes will push Indian real estate to evolve as per the global standards. This would definitely attract huge investment and interest from national and the international investor's bandwagon.
Big Picture, on this Independence Day, is that the things have improved dramatically over the years. It is not just that Indian real estate has evolved, but it has also become robust and buyer friendly. Over the period of this long journey, all the concerned industry stakeholders have evolved in terms of wealth, demand for enhanced quality of the product; developers as regards technological advancement and adopting modern construction techniques. With this Independence Day, let us look forward to the positive growth of Indian real estate.(The author is founder and CMD, Hiranandani Communities. He is president (Nation), National Real Estate Development Council (NAREDCO), which works under the aegis of the ministry of housing and urban poverty alleviation, Government of India)