Economic Contribution of Real Estate Property Investment
The economy of a country determines its financial future and, one major factor contributing to the economy is Real Estate. Thus, it is one of the most recognized sectors globally. Several sub sectors make up Real Estate property – housing, retail, hospitality, and commercial. This industry is closely related to the demand for office space and urban and semi-urban housing. Hence, acting as a source for millions of people to get involved with it.
According to the Direct, Indirect, and Induced Effects Index, the construction industry in India ranks third among the 14 major sectors, making real estate property an essential part of the Indian economy.
The Significance of the Real Estate Property in India
Real estate generates the second-highest level of employment in India after agriculture. With the current development and projects in the country, non-resident Indians (NRIs) will also invest in real estate in the near future. NRIs and locals will now have the chance to take advantage of more types of real estate investment opportunities.
The real estate market grew from Rs. 12,000 crore (US$ 1.72 billion) in 2019 alone and is expected to grow from 65,000 crores (US$ 9.30 billion) by 2040. Retail, hospitality, and commercial real estate sales are also increasing, leaving India with the needed infrastructure to meet its growing demands.
Investments in Indian Real Estate
Investing in Real Estate has become much easier because of government initiatives and continuous development in major cities like Hyderabad, Pune, and Bengaluru.
Real estate developers in India have shifted gears to meet the challenges of an increasingly informed consumer base and globalization. SEBI has approved the Real Estate Investment Trust (REIT) platform, which will allow investors from all over the world to invest in the Indian real estate market. In the coming years, it will create an opportunity worth Rs. 1.25 trillion (US$ 19.65 billion) in the Indian market!
The growing need for real estate property developers to manage multiple projects across multiple cities also compels them to invest in centralized processes to source materials and organize the workforce, leading the way to welcome thousands of investors.
Coming to the residential sector, the central government plans to build 20 million affordable houses in urban areas across the country by 2022, as part of the ambitious Pradhan Mantri Awas Yojana (PMAY) scheme of the Union Ministry of Housing and Urban Affairs. Due to this, demand for retail and office space in urban areas is likely to skyrocket as the number of housing units increases.
Furthermore, private companies are developing residential ventures for the families to settle and find employment at affordable rates alongside government initiatives. As a Real Estate investor, you will be able to secure a good place in the future by making profits out of your investment.
In conclusion, the evergreen sector contributes 6-7% of the GDP and creates jobs in the economy on average.
Therefore, Flivv Realty strives to help you get your hands on the best Real estate property deals and reap benefits over time. We connect you with the best Real Estate stakeholders in the city and, we provide free consultancy throughout your purchasing process. From explaining market conditions to post-buying consequences, the expert team of Flivv Realty will always be available to aid you. Be a part of contributing to the economy and invest your money safe with us.