REAL ESTATE SECTOR

Introduction : The real estate sector is one of the most globally recognized sectors. Real
estate sector comprises four sub sectors - housing, retail, hospitality, and commercial. It is
also expected that this sector will incur more non-resident Indian (NRI) investments in both
the short term and the long term. Bengaluru is expected to be the most favoured property
investment destination for NRIs, followed by Ahmedabad, Pune, Chennai, Goa, Delhi and
Dehradun. It provides employment to millions directly and indirectly.

Goal is to provide houses to everyone by 2022 under PMAY(Pradhan Mantri Awaas Yojana)

which aims at negligible slum population. According to Census 2011, 377.1 million Indians

comprising 31.14 per cent of the country’s population lived in urban areas, which is now

projected to grow more than 600 million by 2031. Residential sales continued to lag given the

negative sentiments brought about by delayed projects and continuing woes of non-banking

financial companies (NBFCs). Homebuyers too deferred purchase and preferred renting out

over buying a house. Banks too were keen on resolving sticky loans rather than lending fresh

loans.

EXPECTATIONS : As there is slowdown in growth rate of real estate sector, it is expected

that government will provide loans to people at less interest rate who take loans for buying
houses or making investments in this sector. And also government will increase investments

to make this sector more attractive so that foreign investors invest in it. Government is

expected to give more tax deductions to people who are buying houses. If government takes

all the necessary measures, it is expected that this sector will contribute around 13%-14% to

GDP.