The Indian real estate sector plays a significant role in the country's economy. The real estate sector is second only to agriculture in terms of employment generation and contributes heavily towards the gross domestic product (GDP). Almost five per cent of the country's GDP is contributed to by the housing sector. In the next five years, this contribution to the GDP is expected to rise to 6 per cent.
There are various developments and elevations which are taking place in the real estate sector with more number of apartments in India and owing to this, it is growing at a fast pace. Various factors are responsible for the growth of this sector and its emerging trends. There are few countries which are witnessing a high rise whereas few countries are witnessing a downfall in this sector.
Another key factor for the development of real estate in India is the kind of policies adopted by the government to enable easy investments in the industrial and the economic sector. In the past few years, the government of India has adopted a new stand regarding the foreign direct investment (FDI) policies which encourages other countries to invest in Indian properties. The real estate in India is the second most favoured destination for the FDI and the country has attracted three times the foreign investment in the past years. The reason for the sudden surge in the Indian real estate is the positive outlook of the Indian government. There is a rapid growth in the commercial, residential and retail sectors of India in metro cities like Mumbai, Delhi, NCR, Bangalore and Chennai.
As mentioned earlier, the real estate in India is one of the major revenue generating sectors with the growth and the depreciation of this sector which influences the economy. Owning a property in India is one of the greatest assets and is one of the most profitable investments in India. There are very less chances of a loss as the real estate growth graph is escalating day by day. Factors responsible for the rapid growth of real estate in India;
Apart from just the increase of the Indian investors, there are also various NRI real estate investors. India which considers property investment as a real asset has changed the definition. The realtors have portrayed the property investment as an element of lifestyle and a splurge of luxurious apartments with beautiful commercial complexes and extraordinary retail ventures. This in turn has attracted the NRI potential property buyers. There is an increase in the number of NRI property buyers in India who are planning to settle down in India as well. Ever since the real estate sector underwent a rapid upsurge, people from various countries have been relocating here. As mentioned earlier, the implying of FDI is one of the major reasons.