The housing sector in India has been witnessing a significant of biggest housing boom in 15 years, with various factors contributing to the growth. A Capital Advisors firm in the country has reported that this boom is probably the largest in the last 15 years. The firm’s Managing Director and CEO, Vipul Roongta, has attributed this growth to factors such as affordability and the aspiration of customers to own homes.
Roongta also noted that the residential real estate market has revived strongly after undergoing significant pain due to the new realty law RERA and demonetization. The account- ability enforced by RERA, which holds developers accountable for completing projects and can result in imprisonment for defaulters, has been a significant contributor to the sector’s revival.
To cater to the growing demand for affordable housing, the firm has launched a $3.2 billion real estate fund. 85 percent of the capital has already been committed. Last year, housing sales in India reached an all-time high of nearly 3.65 lakh units across seven major cities, according to property consultant Anarock.
Kuldip Narayan, Joint Secretary, Union Ministry of Housing and Urban Affairs, said the size of the urban sector will double in the next 25 years. He said the requirements for facilities, residential spaces, commercial spaces, and urban infrastructure would double. “With increasing urbanization from 12 to 30 per cent, the next 20 years could see more development than in the last
50 years,” he said.Narayan also alluded to the government’s emphasis on changes in construction technologies highlighting the government’s “consistent stand on reducing carbon emissions and improving energy efficiency” and encouraging the industry to “adopt better and resource-efficient construction technology”.
Raj Menda, joint chairman at FICCI Real Estate Committee and Corporate chairman at a real estate firm, said, “After consecutive years of slowdown in the sector, last year witnessed unprecedented growth by reaching a new historical height in the commercial office segment”.
He added the extraordinary demand for flex space from medium and large enterprises further propelled the sector’s growth.
Arun Chawla, director general at FICCI, said, “With an increase in urbanization and household incomes, the demand for residential real estate has seen an unprecedented surge. As a result, India is now among the top 10 price appreciating housing markets internationally.”
In conclusion, the housing sector in India is experiencing a significant boom, and the demand for affordable and mid-income housing remains strong. The government and private sector are working towards meeting the demand and providing the necessary infrastructure to support this growth
Reference: Economic Times Business Leaders