Real Estate – A Real Asset
Before we dig in, let’s look at a few numbers to better understand Real Estate’s current market scenario –
- Approximately 600 million people are expected to make urban India their home by 2031.
- Presently, the housing deficit in India stands at approximately 19 million units.
Now, let’s look at how Real Estate is becoming a Real Asset under the current crisis.
A well-constructed home with all the essential resources and services in the vicinity holds significant aspirational value for the customers. Connectivity to places of work in urban centres and the presence of social infrastructures like schools and hospitals are added incentives.
Also with increasing market volatility, people’s interest will change from investing in mutual funds, SIPs to investing in an asset which they can call their own. In such cases, affordable housing developers will play a major role as COVID-19 situation has exposed the volatility of the share market.
Additionally, to promote the “Housing for All by 2022” mission, the government has launched an online web platform, pmaymis.gov.in. This platform acts as a resource tool to assess requirements of affordable housing and it gauges the current demand & supply of housing within the country.
To summarize it all, there is a strong way ahead for the Real Estate’s Affordable Housing sector in India.