5 FASCINATING THINGS TO KNOW ABOUT REAL ESTATE IN INDIA

Introduction

The real estate sector in India is one of the fastest-growing sectors and has been consistently recognized as one of the best investment options. India is ranked third for Leadership in Energy and Environmental Design (LEED) certified space, with over 12 million sq m. It is estimated that by 2020, this sector will hit USD 180 billion in returns. The Compound Annual Growth Rate (CAGR) in this sector is expected to be around 11.2 percent for the period 2008-2020. However, the market can also be affected by political and economic downturns. This means that supply must be able to keep pace with

5 Fascinating Things to Know About Real Estate in India

Here are a few interesting facts about real estate in India. Did you know that the real estate is not just commercial, residential, and rental properties, but also includes hospitality?

Do you believe that a higher price means better quality? Maybe this is not in the case of real estate. Remember that the pricing is dependent on a vast number of factors such as location, amenities, and other criteria. So higher pricing does not mean that you will get better quality fittings. This is a common misconception, especially among first time home buyers who want the best during their first buy.

Once you are past this perception, the next perception that has to be busted is the term “super built-up” that buyers believe they pay extra for at the time of registration. However, were you aware that according to the Indian Government, this charge is valid and covers the cost of providing common amenities such as the lobby, corridor, and lift area to name a few, which is proportionately divided among flat owners.

The real estate market is a boon to both the government and the citizens alike. For the government, it is a realisation of huge source of revenue through property taxes, generates employment opportunities, which is important for economic progress and for home or property owners, it is an investment for the future. According to reports, the real estate market contributes almost USD 126 billion.

However, there are risk factors that must be taken into account. Due to the economic downturn and disproportionate real estate prices, developers are now concerned about selling primer properties that are even more costlier to develop and may prove unaffordable for buyers. While banks provide attractive home loan offers and interest rates, today, customers have the option to choose from a variety of real estate properties that come in a wide range to suit different budgets.

The real estate market continues to stay attractive and hold its sway in spite of these upheavals, due to migration from rural to urban areas, growth in migrant population and growing disposable income.