It is estimated that the real estate industry in India is worth $12 billion.
Nearly 80% of the real estate developed in India is residential, and the rest consists of office spaces, shopping malls, hotels, and hospitals. This growth is mainly due to off-shoring businesses such as high-end technology consulting, call centres, and software development. The real estate sector is India’s second-largest job creator after agriculture.
Since the IT industry is driven by human resources, the hiring and housing of people, both at their workplace and home, has assumed major importance.
Though the real estate industry in India is said to be the most promising, it is nonetheless hampered by market uncertainty and conventional limitations. In India, the real estate market is largely unorganized, fragmented, and dominated by small players with a local presence.
One of the most significant economic policy decisions the Government of India has taken is to liberalize FDI norms in the construction sector. Investors in the housing and real estate sectors were previously restricted to Non-Resident Indians (NRIs) and Persons of Indian Origin (PIOs). Apart from NRI investors, foreign investors could only invest in integrated township and settlement development through a wholly-owned subsidiary or a joint venture company with a local partner in India.
With the pandemic upon us, global investors are looking forward to the long-term growth prospects of the Indian real estate industry, specifically the digitization of the sector.
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