Indian real estate tends to be attractive due to its strong economic fundamentals and demographic factors. Not surprisingly, with realty development reaching a point of saturation in developed countries, global real estate players are looking at India for tapping opportunities in the real estate. The country’s realty sector though riddled with problems is witnessing some transformation though at a slow pace in terms of policy reforms and increased professionalism.
The Indian real estate sector comprises four sub sectors – housing, retail, hospitality, and commercial. The major transformations in the sector in the recent years have been the – larger scale of projects, development of new operating models and new regulations, advancement in technology and newer funding sources such as private equity, non-banking financial companies etc.
However, there have also emerged new challenges across the real estate development, resulting in the sector at large struggling to maintain the growth momentum. The growth of the real estate sector is restricted by many factors – high borrowing costs, inadequate and slow infrastructure development, lengthy approval processes and of course lack of transparency, high land prices and shortage of core qualified professionals.
Industry expectations are that with more investments in Indian real estate and coming of more global players to India, the realty business will mature, become more transparent, improve management and adopt advanced construction techniques. In addition, excise duty reduction on major construction materials will help lower project costs and expansion of the interest subsidy on loans will boost developers’ interest in this segment.
Buildotech presents perspectives of some of the real estate professionals on topics ranging from of investments and government regulations in Indian real estate to potential, expectations and outlook for the sector in the coming year.