Strong performance of real estate in uncertain markets
India’s real estate sector includes the housing, retail, hospitality, and commercial sub-sectors, which is showing its strong performance in uncertain markets of Kolkata and Karnataka.
Today India is undergoing a major transformation that has widely impacted business momentum and demand in the economy. It is observed that the India equity market has begun to stabilize since early October 2019. Real estate in India is one of the largest contributors to jobs in the country as it includes hospitality, retail, housing, and commercial sub-sectors.
As per the recent press release by CREDAI, India’s real sector has been witnessing steady growth over the past few years. Particularly, Kolkata and Karnataka’s real estate market has emerged as one of the leading industries in India.
In both places, there’s an increase in demand from potential home buyers and investors and is expected to witness a further boom in the sector by 2020. Moreover, Bengaluru is estimated to be the most favoured property investment destination for NRI‘s.
Transforming real estate market
The Indian real estate sector has observed high growth in recent times with an increasing demand for office and residential spaces. The real estate sector in India is predicted to reach a market size of US$ 1 trillion by 2030 from US$ 120 billion in 2017 and contribute 13% of the nation’s GDP by 2025. As per data released by Department of Industrial Policy and Promotion (DIPP), the construction development sector in India has received Foreign Direct Investment (FDI) equity inflows to the tune of US$ 04 billion in the period April 2000-March 2019.
It is observed that branded real estate developers have seen an upswing of sorts and improvement in sentiment, and standalone or smaller projects are yet to obtain any Startup, ITeS, IT sectors are bringing in more real estate business to the state and country. Approximately Rs. 46,000 crore investments in the last 3 months have been made in the stock market by foreign investors. With this, uncertain real estate markets, especially Karnataka and Kolkata, will see more investment in the near future from NRIs.
Furthermore, nowadays, we are seeing a whole new group of people interested in rental homes with services. This tells us that the sector is sure to increase as it caters to these new and developing needs.
Lastly, considering the above scenario, Kolkata and Karnataka’s real estate markets have been a mixed bag in the year 2019 with an upswing of sorts and improvement in sentiment.
Disclaimer: The views expressed above are for informational purposes only based on industry reports and related news stories. Propertypistol does not guarantee the accuracy, completeness, or reliability of the information and shall not be held responsible for any action taken based on the published information.
