Real estate is an important driver of economic growth because it makes up a large part of individual and business wealth. The housing market can increase or decrease economic growth. The good news is India’s real estate sector forms an integral part of India’s economic growth. Real estate is already the third-largest sector driving India’s economic growth. Government reforms such as RERA, GST, Securities Exchange Board of India’s declassification of the status of a sponsor for Infrastructure Investment Trusts (InvT) and Real Estate Investment Trusts (REITs), have revived buyers’ trust in the sector, boosting sales.
Today, let’s see HOW and WHY real estate contributes heavily to the economic growth of our nation!
By promoting employment
Moreover, after agriculture, the real estate sector is the second largest employment generator in India. This is due to the chain of linkages that this sector possesses with other sectors of the economy, such as the financial and business sectors. Around 250 industries including cement, steel, and brick industries depend on the real estate sector. With timely reforms, this sector can become a major wealth creator in the coming years.
Because more working and business professionals are investing in real estate
Traditionally, men used to build homes which were used by generations to follow. Women did not buy real estate. Also, earning sons of the family also lived under the same roof as their fathers, and creating a separate home was taboo. Today, the scenario has changed in many ways, and mostly for the better. Freedom, individual opinions, and space are seen in a positive light by both parents and children. Most earning members of the family are wanting to invest in real estate sooner or later, even if they don’t wish to live separately immediately. Home buyers are demanding larger and more spacious homes, given the work-from-home or hybrid model of working. Buyers are looking to upgrade their homes quickly and wish to upgrade their standard of living and give loved ones a better life.
Because there are friendly loan schemes
India makes it possible for people of all categories to start from scratch. Subsidized education for people, stipends for women entrepreneurs to start a business, or home loans at minimum requirement – our nation has tried for years to support citizens to become self-sufficient in all possible ways. The home loan rates in India are the lowest compared to any other type of loan, and individuals can always avail themselves of these provisions smartly. Taking a loan if you cannot buy a home with your own money, has also become a thing. The interest rates are lesser, and some loan providers even let you choose the repayment period for yourself. While business and commercial loans are more stringent, home loans are much more relaxed.
Because real estate includes appreciable assets
We talk to our parents and at some point, we can hear a story where they mentioned how great it would have been if they had invested in a certain property a decade back because now the same place has multiplied in a bomb. Large properties and spacious homes bought when the prices weren’t skyrocketing are the best things you can do for yourself and your generations to come. Gen Z and millennials are more vigilant. They are investing while living a good life as well. Also, they are doing their research well and relying on the expertise and experience of trusted builders.
Digitisation and accelerated IT
With the economy running heavily through digitisation, hiring in the IT sector has been strong in the last two years. This has led to incremental demand for office space. The co-working space is expected to benefit from the return to normalcy, creating demand for flexible office spaces. Office rents are also increasing and many employers are now wanting to purchase a place rather than splurging on rent while making no investment. Moreover, the working class is now getting attracted to a good working culture where office infrastructure counts. In the future, larger office spaces will be needed, which is good news for the commercial real estate sector, and the economy.
Prices of real estate are going to rise, always. It’s best that you invest in a property as soon as your finances allow. This will make for a retirement plan. If you wish to secure your dream home (i.e. 3BHK flats in Vadodara or 4BHK bungalows in Vadodara) before prices go higher, visit us at your earliest convenience! We also have commercial spaces, and we would love you to book a visit for the same. Call us now and get a tour.