The real estate industry is regarded as the dominant sector globally. It embraces four core sectors - retail, housing, hospitality, and commercial. The growth of this sector is burgeoning due to the growth in the corporate environment, there is an increased demand for office space as well as urban and semi-urban accommodations. The Real Estate industry ranks third in contributing to the economy of the country among all 14 sectors. It has a major impact on the GDP of India, making it a vital option for discussion.
It is also estimated that the Real Estate industry will incur more NRIs and HNIs investment in the upcoming years, both in the short and the long term. Bengaluru is expected to be the most favored property investment destination for NRIs because of its cosmopolitan lifestyle, growth opportunities, and large-scale development. NRIs are looking for Premium flats for sale in Bangalore as they possess a higher potential for ROI.
Future of Market size of Real Estate Industry
India is going to witness a mammoth rise in the market size of the Real Estate Industry, some of the technical facts are mentioned below
- The real estate sector in India is estimated to secure a market size of 1 trillion USD by 2030 from 120 billion USD in 2020.
- By 2025, real estate will contribute 13% to India’s GDP which is currently 7%, It ensures the credibility of this sector.
- Almost 60 million houses will be constructed by 2022 under the Government initiatives like House for All and the Affordable Housing scheme.
- The market size of co-working spaces will be going to reach USD 13.02 billion by 2025, IT/ITeS will be dominating the market with a 41% share followed by manufacturing units with 16% share, other services, and co-working will settle down with 10% respectively.
How Government is acting to build a strong future for Real Estate in India?
- Under the Union budget of 2021-2022, The government has damped the tax up to 1.5 lakh on home loan interest rates.
- The tax holiday has been extended for this whole fiscal year for Affordable Housing Projects.
- income tax relief initiatives for real estate developers and homebuyers for primary purchase/sale of residential properties of value up to Rs 2 crore is proposed under Atmanirbhar Bharat package 3.0. The deadline for it is June 2021.
- To uplift 1600 stalled housing projects across the top cities in India, Government has decided to invest 25,000 crores in the Alternative Investment Fund (AIF).
- Reduction in stamp duties in Karnataka and Maharashtra has turned out to be a blessing for home buyers, Reduction in Repo rate has been a piece of good news for the Real Estate developers. If you are looking for a flat in Bangalore for sale, now is the right time to invest.
Future Trends we will see in 2021
#1. Higher Demand for Properties
During this pandemic, everyone got on hold for a while but with time everyone is adjusting to the new normal, new job opportunities are visible now and it will increase the demand for shelter, hence the demand for properties will see a rise in 2021, both commercial and residential. G corp Residences has established New apartments in Koramangala for the people who are willing to invest in peaceful and luxurious living.
#2. Rise in Micro-Markets
In 2021, Tier 2 and Tier 3 cities are likely to gain the attention of Real Estate Investors due to the growing potential of these cities which is backed by Government initiatives like Affordable Housing, Atamnirbhar Bharat, and Housing for all. Micro markets are the need of the hour, it prevents scattering of people in terms of investment.
#3. Sustainable Infrastructures
Sustainability is the future of the real estate sector, many of the developers have incorporated this strategy into their townships, establishing water treatment plants, rainwater harvesting units, underground sewage treatment, eco-friendly materials for construction, and many others to reduce the stress on the environment.
#4. Smart Homes
Smart homes are another feather in the cap of real estate which is going to attract homebuyers in 2021. Smart Homes stand to be a reality within the next decade if they go by the current speed. Automated real estate spaces ease out the lives of their owners and attract lots of investment opportunities.
#5. Private Investment
The finance minister has taken the initiative to make private investment formats such as REITs and InvITS more accessible to the masses through dispensation on TDS (tax deducted at source). These measures along with the inclusion of foreign portfolio investors will encourage private participation in Real Estate Industry. Luxury Flats for sale in Koramangala are in reach of the homebuyers now due to these initiatives.
Conclusion
As the abovelisted growth projections and trends indicate, the future of Indian real estate looks bright and going to benefit from technological innovation within this space, especially during this pandemic time. The year 2021 will be going to offer great opportunities to both the Real Estate builders and the end-users. With rise in micro-markets and increasing demand for sustainable homes, we are going to witness some new changes in the Real Estate industry in 2021.