In the past few years, the real estate market in India has undergone a considerable transformation, with rapid development in mid-category, premium and luxury housing projects. As a result of technological disruption, favourable government policies and rapid GDP growth, Indian real estate is booming with opportunities to help you own a luxurious home in prime areas – such as a 2 BHK flat in Ghodbunder Road, Thane. To understand how real estate in India works, read on to know more about the prime factors dominating the sector today:

Economic Growth

The economic scope in India has been growing year on year, leading to great inflow of foreign investment within the construction sector. Governmental policy on foreign direct investment is highly liberal, allowing easy investment within the segment. This coupled with growth in GDP and favorable variables in the form of inflation have led to a rapid increase in the demand for real estate in India.

Increase In Affordability

The willingness of an individual to own property is largely dependent on their buying capacity. The affordability of consumers in India has risen drastically, largely due to the entry of multi-national companies and subsequent generation of promising jobs in every sector. The increase in affordability of consumers is directly proportional to an increase in demand for housing properties, especially within the premium and luxury segment. This year, the RBI declared a 25bps reduction of repo rate, bringing it down to 6%. Other leading banks as well as NBFCs have also followed through with considerably lower interest rates on home loans. With increased disposable income and ease of financial aid, more people are looking at purchasing property, particularly in cities. Buying a centrally located, modern constructed 2 Bed Residences in Thane is no longer just a distant dream.

Family Structure

The past few years have also brought about a significant change in the structure of Indian families. Metropolitan cities such as Mumbai have become a magnet for educational as well as commercial prospects. High migration rates coupled with rise in nuclear family set ups have led to an exponential increase in demand for living space in cities.

Governmental Regulations

Government laws and policies have played a major part in the boom of real estate in India. Favourable regulations such as the Modern Tenancy Bill (2015), RERA bill (2016) and GST (2017) have been implemented with the intent to expand the demand for residential property in India.

Consumer Attitude

With numerous positive factors at play, the buyer’s intent is more solid. The combined force of low interest rates, government regulations, ease of acquiring home loans, high demand and a promising future help build confidence in the consumer’s mind – further increasing willingness to invest in property.

Fuelled by numerous supporting factors, the movement of real estate in India is definitely upward. Development of supplementary industries such as cement, construction and financial services will further intensify this growth and make the dream of owning a luxurious home more accessible to all.