The real estate is all set to see a boom by 2020. The realty pundits have predicted a positive future for investors and customers who are waiting for the prices to stabilize and expecting on-time schedules for colonizers’ projects.As per realty forecasts, the Indian real estate market may very well arrive at the figure of US$ 180 billion by 2020. Of this, the housing sector is set to make a contribution of 5-6 percent to the country’s GDP (Gross Domestic Product). The market has been expanding and is supposed to grow at a Compound Annual Growth Rate (CAGR) of 11.2 per cent. All the segments of real estate like retail, commercial buildings, and hospitality, are significantly seeing a rise in tide to match the growing needs of infrastructure in India. However, there are bound to be some basic transformations that will shape the new face of real estate. The consumer of today is a global citizen with a broader database of knowledge and exposure to international standards. In order to cater to this category of alert consumers, the realtors are also gearing up to meet the new challenges in their market. The trend has, thus, changed — real estate businesses are now being managed by professional hands rather than just families. The result — the best of knowledge and expertise in every field — right from project management to architecture to engineering, is now available at their fingertips.
Further, the growing presence of FDI in the Indian market is contributing to larger transparency in the real estate sector and the developers have revamped their accounting and management systems to improve their standards so as to gain large funding for their projects.
Throughout the country, real estate projects have seen increased investments by Private Equity (PE) funds and Non-Banking Financial Companies (NBFCs).
The increasing GDP per capita will further boost the real estate investment leading to great opportunities in India. In three to four years, investable real estate is destined to see a growth of more than 55 per cent, as compared to 2012.
Cities are growing fast and they will create a wider range of return opportunities. Add technology innovations to this, and the sustainability of buildings will increase manifold. Those who fail to adopt new technologies in their quest to provide the finest to their customers are sure to become obsolete. A very important feature here is the government’s role and partnership with developers to mitigate risks in urban development projects.