Importance of Housing

Ever since human civilization evolved, the human settlement became a primary concern

along with food and clothing. Housing, in fact, laid the foundation for human settlement and

civilization. Good housing is, thus, a pre-requisite for human development and welfare. It is

essential for the smooth operation of modern society. Healthy and commodious living provides

incentives and generates efficiency, energy, zeal, and strength on which depends on social,

cultural and economic prosperity.

The housing sector is recognized as a major employment generator. It also results in the

growth of many home-based manufacturing industries like cement, iron and steel, paints,

marble / ceramic tiles, bricks, electrical wiring and appliances, PVC pipes, furniture, sanitary

fittings, household articles and other consumer durables. With forward and backward linkages,

housing activity provides impetus to economic growth. Whenever the economy is facing a

recession, the investment in the housing sector has the potential to kick-start the economy for

growth.

It has a multiplier effect on income and employment. Due to its strong forward and

backward linkages, even a small initiative in housing will propel the multiplier effect in the

economy. The main reason is that the investment in housing increases income levels of the

people having low income, who normally have high Marginal Propensity to Consume (MPC).

The concept of housing is a dwelling place owned and controlled, constructed by the

occupants themselves or by any other but enjoyed for the time being. The main aspects of the

concept of housing are:

  A residential house;
 Constructed by the occupants or by any other and
 Having minimum living facilities.

Housing is not just a question of the house; but, a world of community and cosmos for

building and nurturing; thus, for maintaining social, cultural, economic and political systems

which permit human beings not just to survive, but hopefully to proper. In the hierarchy of basic

human needs, shelter occupies third place only after food and clothing. According to Maslow’s

need hierarchy theory, after the satisfaction of one want; another want will arise for a human

being. This implies that an individual after satisfaction of food and clothing and the recent years

have witnessed a steep rise in the prices of properties.

The rapid pace of urbanization owing to the rural-urban migration is putting a strain on the urban

infrastructure in the cities of India and has led to the substantial housing shortage. The growing

concentration of people in urban areas has increased the number of low-income people living in

slums and informal settlements. It has resulted in an ever-widening gap between demand and

supply of housing, both regarding quantity and quality such as congestion, obsolescence, etc.

The housing shortage in the urban areas has touched 18.78 million units, where 95% of the

shortage is in the economically weaker section and low-income group, a report by the National

Housing Bank (NHB) said. The Report on Trend and Progress of Housing in India said that the

housing trend during the year witnessed supply-side constraints including the lack of availability

of land and finance at reasonable rates and added that demand drivers include the growing

middle class and urbanization.

Real estate in India continues to be a favored destination worldwide for investors,

developers and non-resident Indians (NRIs), driven mainly by investor-friendly government

policies and rising globalization. The second leading employment generation sector after

agriculture, real estate contributes about 7.2% per cent to India's gross domestic product (GDP).

The foreign direct investment (FDI) in the sector is projected to touch US$ 25 billion in the next

5 years.

The sector involves of four sub-sectors- retail, hospitality,housing and commercial. While

housing gives to five-six percent of the country’s gross domestic product (GDP), the lingering

three sub-sectors are also mounting at a rapid pace, meeting the growing infrastructural needs.

The real estate sector has changed from being unclassified to a energetic and structured

sector over the past decade. Government policies have been influential in providing support after

recognizing the necessitate for infrastructure development in order to make certain better typical

of living for its citizens. In addition to this, sufficient infrastructure forms a requirement for

supporting the long-term growth thrust of the economy.

Characteristics of the Real Estate Market in India

Realization of large commercial projects

IPOs bydevelopers
Growing Market
Gradual organization of the markets in the
Demand Tier Icities

Emergence of transparency and liquidity

Greater availability of
Entry of international real estate consultancies
information
Governing legal frameworkrelaxed
Competitivepricing

Cause-Effect scenario leading to emergence of organized real estate market in India

The property market in India has conventionally been unclassified and parted. However, the past

has seen a consolidation of points in the market as developers are extending their capacities to

the greatest in order to meet the growing market demand, which in turn has optimistic large

projects with sourced financing.

Driving Forces

Stated below are the reasons that have led to the real estate boom in the country

 India’s appearance as an striking off shoring destination and accessibility of pool of

extremely skilled technicians and engineers; Development ofgreat

captive units of major players include GE, Prudential, HSBC, Bank of America,

Standard Chartered and American Express

 Increase in disposable income and growing middle class, increasing the require for

quality residential real estate and real estate as an investment option.

 Booming economy; accelerated GDP to 8%p.a.
 Relaxation of legal rulings and processes by the governing bodies encouraging

investments in real estate

 Entry of professional players equipped with expertise in real estate development;

 As per utilization, the real estate space can be classified as follows:

  Real estate utilization

Real Estate Marketsize

The real estate sector in India is

Growth in
tourism
being renowned as an infrastructure service

Urbanisati that is pouring the economic

Policy growth engine
on support
of the country. The Indian real estate
Growth
market size is projected to reach US$ 180
drivers

Growing
billion by 2020. Easier
economy financing

Epidemolo
gical
changes
 The real estate sector in India is on looking rapid growth in the residential, commercial

and industrial segments. Real estate development, once controlled to bigger cities, have shown

marked progress in smaller cities and towns owing to accessibility of banks loans, higher

earnings and enhanced standard of living.

Evolving of Real Estate in India:

1) The nascent period - 1980-2000: The Real Estate scene was just taking off in India with

flats promotion just getting of the block. It was directionless and had haphazard growth.

There were very few regulations and rules to follow.

2) People were specific about their location and were unwilling to move out of their locality.

They preferred city to suburban areas.

3) Individual houses were demolished and flats were constructed in the prime areas of the

city – flats promotion was at its peak.

4) Flats system enabled buyers to get more living area at a lesser price, when compared to

construction of a individual house.

5) Middle income group people were able to buy their own residence even in the central

areas of the city - more people were brought into the ambit of real estate.
6) Drinking water was available in plenty and drainage was adequate to meet the demand.
7) Public transport facility was available only to certain extent,
8) Construction industry was generally unorganised and did not bother much about

infrastructure development. Its sole aim was to gain maximum profit with less

investment.
9) More cash inflow into the system – most of which was unaccountable.
10) Government support to the industry was minimal.

The Boom Period – 2001 – 2010

1. Reputed companies started to indulge in construction activities.

2. Property prices increased manifold.
3. Information Technology industry sector boom.
4. This boom in IT Industry resulted in more employment generation and higher salary.
5. The higher the salary more the quantum of disposable income.
6. People realized the need for living under own roof and assets creation.
7. More Banks and Financial Institutions started giving home loans.
8. The Government on its part provided Income Tax relief for Principal and Interest paid for

home loan.
9. Allied sectors of construction industry like cement, iron and steel, tiles, electrical and

bath fittings, etc. Also benefited from this boom.

10. The Government pushed for liberalisation and in that process allowed 100% FDI

(Foreign Direct Investments) in the Realty Sector. This resulted in foreign companies

entering the fray.

Stagnation Period – 2011 to 2020

1. The sub-prime economic crisis that almost crippled US economy had a cascading effect

in India. Economic Growth got stunted, GDP fell sharply, employee salary became either

stagnant or reduced substantially.

2. Companies cut down their expenses, there were lot of retrenchments and some companies

even shut down.

3. The Government also brought in stringent rules and regulations to regulate the

construction business. There were lot of speculations and unaccounted money was

making rounds. To negate this, the Government made some moves.

4. RERA (Real Estate Regulation and Development Act) brought about more transparency

in the industry, thus reducing speculation in property.

5. Demonetization made cash transactions almost nil. Those who hoarded cash were hit

severely because of demonetization. The industry which was developer friendly became

customer friendly. Introduction of Goods Service Tax (GST) also had a serious impact on

the real estate industry. The prices came down heavily.

6. Since the salary income was stagnating there were no takers for many properties. Supply

outstripped Demand. Lot of buildings was left unfinished. There was mass retrenchment

of workers.
Challenges & Investment Opportunities

The key challenges that the Indian real estate industry is facing today are:

 Absence of industry status

 Approvals and procedural difficulties.
 Lack of clear land titles,
 Lack of adequate sources of finance,
 Shortage of labour,
 Rising manpower and material costs,
 Absence of title insurance,

 Real Estate Sector contributes to GDP

 Real Estate and GDP are interlinked and contribute to each others’ growth. It is,

therefore, no speculate that ‘Housing for All’ is consistently proclaimed as a national

priority by all major political parties and adopted as a goal by the Government of India in

the National Housing and Habitat Policy document. Integrated housing development not

only satisfies the basic human requirements but also facilitates holistic development

within the parameters of a planned welfare economy. Safe, secure and affordable housing

by any means increases employment and educational opportunities for individuals and

enriches communities leading to a better civil society and better quality of life. Besides

the straightcontribution which Real Estate makes to GDP it enhances social capital which

is intelligible wealth that comes with excellent social network at the heart of which lies

clean environment, hygienic living and quality housing.

 In terms of contribution to the GDP, for every rupee invested in Real Estate and

construction, 78 paisa gets added to the GDP. Real Estate ranks fourth in terms of the
 multiplier effect on the Economy, ahead of sectors like transport and agriculture. The

Investments in the RE sector has steadily increased from Rs. 1150 cr in the First Plan

period to more than Rs. 1,20,000 cr in the Ninth Plan period. Estimates of the Tenth Plan

peg the figure at about Rs.7,00,000cr.

 With positive demographics and a synchronized environment, the real estate sector is

projected to spearhead the Indian economy. According to a joint report released by

CREDAI-CBRE Evaluating the economic impact of Indian real estate, the market is

poised for scaling great heights and the future only looks optimistic with the slowdown

behind us.
 The Indian real estate sector has come a long way since the 1990s’ by becoming one of

the fastest growing markets in the world. It is not only successfully attracting domestic

real estate investment but foreign investments too. The growth of the industry is

attributed mainly to India’s growing population, rising income level and rapid

urbanization. However, despite the positive outlook for the sector in the coming years, it

is battling challenges. These challenges restrain the sector from yielding full benefits of

the potential growth. Moreover, it is facing situational extremities such as increasing need

for housing but diminishing project launches in semi-urban and rural areas and increase

in inventory pile-up but shortfall of demand in urban areas. These trends point towards

some major issues through which Indian real estate is passing at present.
 Lack of clear land titles

The land titles are not clear because of poor record keeping and division of land in

many parts till independence. The slow pace of modernization of land records is further

aggravating the problem.

 Speculation in Land and Real Estate Prices

 The prices of land and real estate in India has increased exponentially in last decade

and causes overpricing of commercial or residential property. In recent times, the real estate

is the most favorable destination for investment in India and far ahead than equity or gold.

Further real estate agents or brokers buy or sell property frequently with their own

investments and cause of surging prices in property.

 Sources of Finance

Finance is the key for development of any industry. Due to poor image of Real Estate

sector, banks are becoming reluctant to provide loans and making regulation tougher to avoid

the bad loans. Alternate sources of finance are very costly and ultimately impact total cost of

the project.

 High Input Cost

The real estate is a capital and labour intensive industry; thus rise in cost of labour

and construction material due to inflation poses many problems to real estate industry.

Further real estate builders many times raise a question about unfair practices in cement

industry for rise of price more than 50% in quick time.

 Further government intervention of building minimum 20% affordable housing putting

extra burden on developers and ultimately on the rest 80%.

 Real estate is the most famous sector for soaking the black money without any ambit.
 High taxation like stamp duty, GST etc. and land acquisition are other major challenges

faced by real estate sector.

All the above issues can be verified by the facts that more than 30% of houses and

commercial spaces are lying vacant in major cities like Mumbai or Delhi despite being so

much demand in real estate sector.

 Thus to handle the above issues government of India has launched RERA. It seeks to

regulate contracts between buyers and sellers in the real estate sector to ensure consumer

protection, and standardization of business practices. It establishes regulatory authorities at

the state level to register residential real estate projects.

 Single Window Clearance:

The major obstacle a real estate developer faces is the property clearance and usually takes 6 to

12 months. The majority of delay happens to procure approvals from authorities who take

months to reply. Single Window Clearance is the biggest challenge faced by the real estate

developers. So implementing this method will not only bring down the project delivery deadline

delay but also the cost of the project implementation. By going online, it will boost the

transparency and curb the scope of undue gratification.

 The GST Rate:

Since the establishment of GST, the real estate has been facing huge roadblock due to

high GST rate. As home buying is a huge investment, the government should bring down the

GST from 12% to 6% to encourage buyers to invest in new projects.

 Rising Input Cost:

Real estate is a capital and labour intensive industry, thus a rise in the cost of labour

creates issues in the development of the project. Furthermore, unfair practice of certain

sections of distributors and cement industry by raising the price creates issues in the project

completion.

 Speculation in property and land prices

 Speculation in property and land priceshas led to the unreal price appreciation in Indian

real estate market. Overpricing has been deterring customers from buying homes and as result

there exists a huge number of unsold units. Foreign Private Equity funds have been blamed for

this to a certain extent as they look for a high return in a short period of time.

 Lack of transparency

Lack of transparency also hampers the Indian real estate. Land encroachment, lack of

regulation act as a deterrent to foreign investors looking to invest in Indian realty. An

independent body appraising prices of lands as per international standard is needed in India to

bring in the much needed transparency.

 Scarcity of land:

While there is a good demand for housing and commercial projects in the country, the

non-availability of land within city limits along with the rising land and construction cost is

leading to an increase in the overall cost of the projects. Thus, making the projects is unviable.

 Lack of adequate policy framework:

There is a lack of coordination between central and state ministries. Further, numerous

central and state level laws, rules, and regulations often result in a lengthy and cumbersome

approval process.

 Complex approval processes:

The lengthy and complex approval process leads to a high gestation period which

eventually results in project cost escalation by 20-30 per cent. Currently, 30 to 40 approvals are

required for any project which generally takes about two to three years.
  Restrictive development norms:

Low floor area ratio (FAR), density norms, ground coverage, parking provision, etc., also

pose as a challenge for the real estate.

 Unfavorable taxation policy:

With several taxes, such as stamp duty, GST, etc., accounting for about 30-35 per cent of

the total housing cost, the final sale price of the unit increases. This makes property unaffordable.

 Development norms:

Stringent development and environmental norms lead to sub-optimal utilisation of land

and also raise the per unit value.

 Lack of adequate funding sources:

Limited foreign funding sources and underdeveloped equity and debt markets also pose a

challenge for the Indian real estate.

 Cost overruns and project delays:

Owing to lack of advanced technology and skilled manpower, the overall project

economics is not achieved and there are further delays. In fact, at present, 25 per cent of housing

projects in India are delayed due to this issue.

EMPLOYMENT GENERATION

The involvement of the real estate industry in the area of employment is wide-ranging

and rigorous. The employment produced by the real estate industries is unreliable and wide-

ranging. There is a lot of scope predominantly for the villagers who wander to the urban areas in
search of employment because of the failure of monsoon. The agriculture has failed them. Their

only resource for survival is only to get into any jobs in the construction industry. The industry

also wants the services of educated, uneducated, professional, non-professional, skilled and

unskilled worker

Realty, construction to generate 15 million jobs by 2022

The real estate and construction sector will generate over 15 million jobs over the next

five years even with signs of stress in the sector in the last few quarters, the Economic Survey

said today. Real estate and construction mutually is the second largest employment contributor in

the country, next only to agriculture, according to the Economic Survey 2017-18.

The sector engaged over 40 million personnel in 2013, and as per projections, it is slated

to employ over 52 million personnel by 2017 and 67 million workforce by 2022. "This implies

that it will spawn over 15 million jobs over the next five years, which will transform to about

three million jobs yearly," the survey report said.

Nearly 90 per cent of the personnel occupied in the real estate and construction sector are

affianced in construction of buildings, while the rest 10 per cent personnel is involved in building

completion, finishing, electrical, plumbing, other installation services, demolition and site

preparation. Over 80 per cent of the employment in real estate and construction encompasses

minimally skilled personnel, while skilled personnel account for over 9 per cent share and the

residual are stretch across work classes such as clerical, technicians and engineers.

Future prospect of India real estate

In line with the past three-four years, the recital of real estate in 2017 was lacklustre in

terms of growth in prices and sales. Real estate which was one of the most sought-after
Investment Avenue among India has seen a dip in its popularity of late because of the stagnation

or dip in prices. Apart from this, real estate has been considered a safe haven for parking black

money but the reforms such as Real Estate (Regulation and Development) Act (RERA) and

Goods & Services Tax (GST) and Demonetization brought in by the Government to curb the

black money menace has hit the sector hard.

In some of the real estate markets, the sales are yet to catch up to the pre-demonetization

level.In 2017, 1.6 lakh units were sold during Q1-Q3 2017 as per Anarock research. The decline

in sales was only to the tune of 30% compared to Q1-Q3 2016.Also, the numbers of new

launches were limited.

Only 94,000 units were added in top 7 cities of India between Q1-Q3 2017, which is a

drop of more than 50% from the same period in 2016.

However, experts believe that real estate market is going through a transitional phase.

Things are going to get better over time and the reforms will help in shaping up the industry to a

more consumer friendly market.

"Overall, 2017 saw the Government making it clear that home buyers will no longer be at

the mercy of real estate developers and putting various measures in place to ensure that housing

supply syncs up with demand and pertinent projects are developed. There are doubtlessly some

teething troubles - some of them very obvious - in implementing and executing the new policies

and reforms. However, they have made a deep impact even now," says AnujPuri, Chairman -

Anarock Property Consultants.

 Affordable Housing is going to be given big thrust by the Government in 2018. The

Government has awarded it with the much-needed infrastructure status. The definition of

affordable housing and houses classified under mid income group was also changed by the

Government to cover a larger buyer base and help developers offload their budget homes

inventory.

2018 is unlikely to see any price rise, however experts believe the recent reforms will

boost the confidence of the home buyers and sales are likely to pick up in 2018.

"The real estate market in 2018 is expected to show price levels on a similar scale when

compared with those of 2017. Andthe year will remain a good time to buy. It is expected that the

market will see more options in ready stock since a greater completion are to take place in the

next year."

Will Real Estate Sector in India fall?

This is one question everyone has been asking, as its answer will ultimately decide

whether you are going to endow in the real estate in India now or you will rather wait for the

Real Estate to fall.

According to the Investment experts and real estate experts 'there is a definite boom in

the real estate market in India and that's why many people are going for investment in the real

estate in India. According to market specialists, Indian real estate market has got a fabulous

potential and it will surely be riding high in the coming years.' Favorable property market and

real estate boom has made property investment in India look safe. This is also proved by the fact
that Indian Government has liberalized its foreign direct investment policy to attract higher

foreign investment.

It's not that the property prices in India have suddenly seen a rise. Prices of property

whether it be residential, commercial or industrial have been rising in India over the last few

years. Taking an example of some of the better developed cities like Noida and Gurgaon,

property prices have increased by up to 5 times within a few years. It's not that only these cities

are experiencing an appreciation in the real estate prices, property prices have been steadily

rising across all parts and sectors of India - may be the appreciation in the prices of property in

other parts of India would not be that much.

A recent survey has revealed that, India stands on the fourth position among the top four

Asian destinations for foreign direct investment. India being the largest democracy with excellent

democratic governance and transparent property laws attracts more people for making the

investment in the property and real estate market than any other country in the region.

Looking at the above factors we can say that as far as real estate sector in India is

concerned it is going only in one direction that's upward. And this current trend will see more

and more people investing in the property market in India. Indian economy is going through a

very good time and is posting new highs on a regular basis.

Impact of Demonetization on Real Estate

In last year, Demonetization was a major financialhappening and is an audacious move

by the Government. As soon as the PM declared demonetization, a debate started in the whole
country. On the news channel, at the offices, everywhere everyone wanted to understand the

consequences of demonetization as it was not so apparent.

The economyof any country depends much on industrial growth predominantly in the

making and manufacturing areas. The opulence of the people is seen only in theirreassure level

of living and hoist in the standard of living. This means a comfortable living must be guaranteed

by the Government by providing adequate housing facilities at affordable cost to the citizens.

An abrupt ban on the accessible high denomination currency notes shuddered the Indian

economy and real estate sector. The proclamation of demonetization and accomplishment of the

Benami Properties Act for unfettered properties took place in the same year. Economists

envisaged the growth rate of the real estate sector is slowing down more than ever. The sector

has been ridden with numerousdisputes for the past few decades owing to lack of

homogeneousstructure. Demonetization also brought about many challenges and lay the industry

beneath dock.

In the past one year, there have been a hardly any positive and prospectively long-lasting

changes in the Indian real estate. The passing of RERA(Real Estate Regulation and Development

Act 2016), the Benami Transactions Act and now the demonetization move will guarantee that

going forward, the sector will drop much of its historic contaminateand become more clear.

The construction industry only accounts for about 8% of the GDP and employment both

straight and meandering to about 40 million people. The demonetization has caused unexpected

stoppage of work in many projects. The payments, particularly to workers, were only by liquid

cash. The sudden curb on withdrawals led to virtual crumble of the industry.
 Wages were until then paid only in cash as most construction workers did not have a bank

account. The developmentdetached cash completely forms the system; therefore construction

companies could not congregate their expenses. Also they were hesitant to borrow money due to

improbability in the market. Consequently, most of the under construction projects came to

languish in metros such as Delhi, Mumbai and Chennai which were the worst affected after

demonetization.

The collision was more apparent in northern metropolitan cities of the country which

were largely investor-driven, compared to southern markets of Bangalore and Chennai,

Hyderabad. Even Pune in the west, where the cashmodule transaction was more, got crashed by

demonetization

Property values which were skyrocketing prior in metropolitan cities have perceived only

small changes in prices. A report on the prices during January 2017-December 2017 designates

that the prices have not plunged drastically.

REPORT ON PRICES ON PRIMARY

MARKET

Capital values Yearly Change

City Micro markets (Rs. per Sq.ft) Jan 2017VS Dec2017

Pune Central 6,860-13,720 -8%
Noida Sector 61,62 4,500-5,500 0%
Mumbai Worli 44,000-52,000 -6%
Bangalore Whitefield 4,500-7,800 -6%
Chennai T. Nagar 13,500-19,500 -3%
 Gurgaon Golf Course Road 11,000-35,000 -2%

The entire demonetization exercise undertaken by the government and aided by other

transformations, like Benami Property Act, RERA and GST, is to be looked at in the backdrop of

the Government's Multipronged policy to generate institutional and regulatory framework for

fastand fixed growth of the economy. And at the Centre of all these schemes is real estate, which

is a key contributor to GDP. Going forward these policy proposals will help make real estate

more systematized, transparent, realistic and affordable, making the sector investor and

consumer friendly which has not taken place as expected as of now. Many companies are not

able to market their houses because of slowdown in the industry. The initiative by the

Government astonishingly made the construction industry to face more troubles than resolution

both from the industry point of view and consumers’ point of view. The real-estate developers are

forced to face multiple troubles and disputes that include liquidity chomp, slowdown in sales

non-accessibility of skilled personnel and lack of significance by the consumers.

Future prospect of India real estate

In line with the past three-four years, the recital of real estate in 2017 was lackluster in

terms of growth in prices and sales. Real estate which was one of the most sought after

Investment Avenue among India has seen a dip in its popularity off late because of the stagnation

or dip in prices. Apart from this, real estate has been considered a safe haven for parking black

money but the reforms such as Real Estate (Regulation and Development) Act (RERA) and

Goods & Services Tax (GST) and Demonetization brought in by the government to curb the

black money menace has hit the sector hard.

In some of the real estate markets, the sales are yet to catch up to the pre-demonetization

level.In 2017, 1.6 lakh units were sold during Q1-Q3 2017 as per Anarock research. The decline
in sales was only to the tune of 30% compared to Q1-Q3 2016.Also, the numbers of new

launches were also limited.

Only 94,000 units were added in top 7 cities of India between Q1-Q3 2017, which is a

drop of more than 50% from the same period in 2016.

However, experts believe that real estate market is going through a transitional phase.

Things are going to get better over time and the reforms will help in shaping up the industry to a

more consumer friendly market.

"Overall, 2017 saw the Government making it clear that home buyers will no longer be at

the mercy of real estate developers, and putting various measures in place to ensure that housing

supply syncs up with demand and pertinent projects are developed. There are doubtlessly some

teething troubles - some of them very obvious - in implementing and executing the new policies

and reforms. However, they have made a deep impact even now," says AnujPuri, Chairman - Ana

rock Property Consultants.

Affordable Housing is going to be the big thing in 2018 given the thrust by the

government. The government has awarded it with the much needed infrastructure status. The

definition of affordable housing and houses classified under mid income group was also changed

by the government to cover a larger buyer base and help developers offload their budget homes

inventory.

2018 is unlikely to see any price rise in 2018, however the recent reforms will boost the

confidence of the home buyers and sales are likely to pick up in 2018, believe experts.
 "The real estate market in 2018 is expected to show price levels on a similar scale when

compared with those of 2017. Andthe year will remain a good time to buy. It is expected that the

market will see more options in ready stock since a greater completion are to take place in the

next year,"

Will Real Estate Sector in India fall?

This is one question everyone has been asking, as its answer will ultimately decide

whether you are going to endow in the real estate in India now or you will rather wait for the

Real Estate to fall.

According to the Investment experts and real estate experts 'there is a definite boom in

the real estate market in India and that's why many people are going for investment in the real

estate in India. According to market specialists, Indian real estate market has got a fabulous

potential and it will surely be riding high in the coming years.' Favorable property market and

real estate boom has made property investment in India look safe. This is also proved by the fact

that Indian Government has liberalized its foreign direct policy to attract higher foreign

investment.

It's not that the property prices in India have suddenly seen a rise. Prices of property

whether it be residential, commercial or industrial have been rising in India over the last few

years. Taking an example of some of the better developed cities like Noida and Gurgaon,

property prices have increased by up to 5 times within a few years. It's not that only these cities

are experiencing an appreciation in the real estate prices, property prices have been steadily

rising across all parts and sectors of India may be the appreciation in the prices of property in

other parts of India would not be that much.

 A recent survey has revealed that, India stands on the fourth position among the top four

Asian destinations for foreign direct investment. India being the largest democracy with excellent

democratic governance and transparent property laws attracts more people for making the

investment in the property and real estate market than any other country in the region.

Looking at the above factors we can say that as far as real estate sector in India is

concerned it is going only in one direction that's upward. And this current trend will see more

and more people investing in the property market in India.Indian economy is going through a

very good time and is posting new highs on a regular basis.