Real Estate Industry plays a very vital role in modern economical times. It basically is "property consisting of land and the buildings on it, along with its natural resources such as crops, minerals or water; an immovable property of this nature; an interest vested in this (also) an item of real property, (more generally) buildings or housing in general. There is no doubt that the Real Estate Industry is among top investment sectors in the current world scenarios.
The economical front market of estate industry in India is expected to reach US$ 180 billion in 2020. India's estate market is expected to reach US$ 180 billion by 2020 from US$ 93.8 billion in 2014. The Indian real estate industry, plays a vital role in contributing to the economy of the country from its currently worth of about US$ 12 billion. The industry in India ranks second in the world in terms of generating employment for the people of India and contributing to the Gross Domestic Product of the country. Moreover its contribution in the GDP of the country is expected to raise by 6% in the years to come.
The main reason for the government of India to allow FDI in Indian was to make the sector more organized and inject a sense of professionalism into the real estate industry. Due to which, the villages adjoining the metropolises have experienced an upsurge in the land priceswhich led several farmers to sell their land and get good money in return which was much more than they could make out of the land.
The role of this sector is quite major in the Indian Economy. It is one of the most important sectors of the economy. The affordability of estate and rental prices can be subjected to changes once in a while due to economical reforms within the country which have a direct impact on the wealth of property owners and tenants as a major portion of peoples investment lies in the real estate Industry as its dynamic nature is what attracts the people the most.
People invest in this industry with the mindset of “Less input and more output” i.e. buying property at lower rates and having their possession until the rates go high and sell it off or rent it to a tenant and enjoy a monthly income and the construction of commercial houses, residential housing, and business spaces, such as hotels, restaurants, theaters, and industrial buildings, namely factories and government buildings, are all covered by the real estate sector. It also involves activities such as the purchase, sale, and development of land. Thus these activities encompass both construction and housing sectors.
India is ranked fourth in developing Asia for FDI inflows as per the World Investment Report 2016 by the United Nations Conference on Trade and Development. That is endorsement at the highest levels – and real estate saw equity investment on a very visible return journey to India last year. The global capital flow into Indian real estate in 2016 stood at $5.7 billion ans is expected to rise in the following years to come.