There has been a drastic slowdown in the realty market of India since 2014. And what to even mention after demonetization, global cash crunch and liquidation of Non-banking Financial Companies.
However, with the government of India making acute efforts in encouraging the citizens in investing in properties, most of these factors be rather a pushover. There are many other factors too that played a significant role in the encouragement process. Realty Regulation acts and economic reforms such as
- Benami Transactions Prohibition Act,
- Amendments in REITs (Real Estate Investment Trusts), are some of them.
Housing price index increased and the market is currently evaluated at 180 Billion US dollar which is almost double of what it was just back in 2014. Real estate market is bound to accelerate.
But still, can we truly say that some policies of the Government of India and change in rules and regulations are wholesomely the reason behind the increased demands. On looking really up close Miraj Developers Pvt. Ltd. found out some other interesting factors that are affecting the real estate demand in India, that includes:
- mortgage availability
- lower interest rates
- increased affordability
- increased income,
- the attractive supply rate of dealers
- customer’s confidences
- the rapid evolution of nuclear families
Other Sectors and Growth in Real Estate
Based on our speculations, it can be said the real estate market of India, is to grow. There are so many factors encouraging the buyer of India. Especially first-time buyers, home-seekers. If regulated properly we can surely take great leverage from these factors and participate in the economy of India. Also, when it is regulated properly it is only true to say it will help other sectors to grow too.
With the increased demand for real estate market industries such as construction, cement, financing companies, retails are also majorly affected. Moreover, there is a huge difference between the demands of rural India and Urban India and so does is in their pricing. Majorly it also had to do with the lack of employment opportunities in the rural areas. With this more and more people move to urban cities, participating in the increased housing and other realty demands.
There are heavy needs for the government of India to invest in building employability in rural areas. Producing attractive housing schemes too can help in generating increased demands. Reduced bank interest rates and unfavorable economic conditions can too discourage a lot of potential buyers. Also, for the smarter play, you can increase the supply as to lower the costing.
From More Reads from Miraj
Recently Miraj Developers Pvt. Ltd. penned an informative and factual article on Affordable Luxury Housing- an evolving realty concept in global markets. Foreseeing these trends already, we have tried to take this article one step further in our published article on how when major factors affect the real estate market of India, Affordable Luxury Housing will come handy in meeting the increased demands of the property seekers and first-time home buyers.