Needless to say, the real estate sector plays a significant role in the Indian economy: it is second only to agriculture in terms of employment generation and substantially contributes to the gross domestic product of the country. Almost 5 per cent of GDP is contributed by the housing sector, and in the next few years it is expected to rise to 6 per cent. Moreover, the construction sector has also been responsible for the development of over 250 ancillary industries such as cement, steel, paints, brick, timber, building materials, etc. A study by a credit rating agency ICRA shows that the construction industry ranks third among the 14 major sectors in terms of direct, indirect and induced effects in all sectors of the Indian economy. A unit increase in expenditure in the real estate sector can generate a fivefold increase in income. With the downturn in the economy, and being a capital-intensive industry, the real estate sector started to face a liquidity crunch emanating largely from banks' cautious approach to financing the real estate companies. This approach was reflected in lower loan-to-property value, construction-linked payment and financing only for projects nearing completion. Further, real estate developers also had to cope with other sources of funding, such as private equity and stock markets, drying up considerably; receivables from residential projects under construction getting blocked; falling demand and buyers deferring payments until they took possession of properties. The resultant fall in valuation in the past few months coupled with high interest rates and low availability of money had put real estate developers on the defensive and kept homebuyers away.
The true test of the professionalism in the real estate sector has to be seen now. In the past a seller's market existed, in which it was only necessary to market products or think about what kind of products to make. But now the market has perceptibly shifted towards the buyer and products must be designed to respond to market requirements. Because the demand in the affordable housing segment is encouraging, real estate developers now need to concentrate on profits through high-volume, low margin deals instead of high-margin and high-quality transactions. This will mean designing affordable housing options suited to average Indian families whose disposable income is steadily on the rise.
During the previous years, real estate development in India is not that in demand especially if there is a high rise of price in the realty sector. Apparently, over the years, this has been broken and India was able to create more rooms of housing spaces for the deprived citizens. The real estate development in India had been expanding everywhere in the country. There had been plenty of real estate companies and groups that been established over the years. Among enthusiastic realty and property investors, blog discussions and online forums have been created. The real estate market in India was developed from the local “thekedaars” to realtors and real estate agents. It has been proven that the real estate sector can best return the opportunity for investment of funds that are long saved.
The for sale real estate listings in India may include industrial setups, office spaces, entertainment centers, mega malls, complexes, building for retail and commercial shops, townships, apartments, and residential houses. Most of construction companies that are related to real estate development in India have undertook into mass development projects. The projects sometimes include development in integrated cities or townships in the country.>
The real estate development projects in India have sites or locations that are fund attracting to the NRI as well as to other foreign investment seekers. Its trends that are more conventional have undergone a prototype shift to a more modern and contemporary outlook even if the sites or locations have serene surroundings. With this shift, the real estate development in India had garnered a newer opportunity of developing the site or location. The opportunity may involve providence of the tranquility from the mountainside holiday destinations to your home.
Jobs in real estate development in India are not mere constructing and acquiring the land. The entire procedure of realty development involves thorough planning regarding the location of the project as well as the desires of the customers based on their needs. Along with the plan, the finest architect is consulted or hired, the layout of the project is designed, the raw materials are customized, state-of-the-art techniques and infrastructures rare employed and perfect finishes are ordered.
The highest yielding investment opportunity for real estate development in India. In this way, real estate developers are attracting the maximum realty investment not just from the local market but international market as well. Numerous real estate developments in India include construction of shopping malls, retail stores, office buildings, commercial complexes, townships, and residential units. The newest real estate entry is the spaces for the IT Parks.