Real Estate Investment Initiatives by Indian Government

realestate investment

Real Estate Sector
How can one recognize the real estate sector? Well, it is quite simple, actually! Real estate sector is the one that comprise of housing, retail, hospitality as well as commercial sub-sectors. The real estate sector grows when demand for land, properties, or housing increases as per various requirements of people. For instance, this industry is well complimented by expansion of corporate environment and the office spaces as well as other housing complexes and properties it demands. Construction industry is linked heavily with real estate sector and influences its growth as well.

According to a survey conducted in India, Bangalore is forecasted to be the favoured real-estate hub among NRIs. Bangalore is closely followed by Ahmedabad, Pune, Chennai, Goa, Delhi, and Dehradun due to investing opportunities in these places. It is estimated that, real estate market will increase its value by at-least 5 times, by the year 2040. The infrastructure for real estate is being provided by sectors such as hospitality, and retail.

Investment in Real Estate Industry
With a rise in demand for household spaces as well as offices, the real estate sector is witnessing a high growth. The figures of institutional investments are slated to reach an all-time high by half of 2020 as the real estate sector and all its sub-sectors growing steadily. With properties getting an increase in value, some of the firms have invested heavily in them. For instance, new housing launches across top seven cities in India got an increase in value of up to 32 – 35% within 2018, which again got elevated around 50 to 52%.

Such elevation in real estate sector has prompted government to take initiatives to encourage investments in this sector. Smart City project is one such instance and a prime opportunity for investors. An alternative investment fund was set up to revive the stalled housing projects. Three ultra-luxury residential projects are slated to come in 3 main cities of India: Mumbai, Bangalore, and Chennai. Pradhan Mantri Awas Yojana has sanctioned around 1 to 1.5 Crore houses: a hotspot for investment opportunities in real estate sector.

An Affordable Housing Fund (AHF) is set up via National Housing Bank (NHB) with an initial amount of around 10,000 Crores. A National Urban Housing Fund (NUHF) has been set up as well for affordable housing solutions as well as ample investment opportunities in the real estate sector.

Wrapping it up
Indian government is bringing in good initiatives as well as opportunities for investing in the real estate sector. The Real Estate Investment Trust (REIT) has got approval from The Securities and Exchange Board of India (SEBI) for improving the investment opportunities in the real estate sector. There has been a shift in approach among real estate developers from family owned businesses to that of professionally managed ones. All in all, this is the time to invest in Indian real estate as all the other commodities are dropping out like nine-pins. Be sure of the risk you are undertaking and invest boldly and confidently in the real-estate sector.

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