The real estate
industry in India has witnessed a time of great economic change especially in
the last decade. It is truly brilliant at the rate at which India has risen
from the ashes as compared to most other global economies after the Global
Financial Crises. Though the economy in this country did manage to bounce back,
but the question is as of today and now – understanding the current state of
the real estate segment in India, is this industry prepared to use this quick
recovery to its best advantage to be at par with some of the well established
real estate markets like Asia Pacific and the USA?
To answer this
question the ecosystem that comprises the real estate industry needs to be understood.
There are architects, developers, stakeholders, government and regulatory
authorities, banks, private equity players, buyers, property consultants and
agents.
In India over
60% of the households earn an average of INR, 70,000 per annum, with almost 20%
of the households cannot afford any type of housing through their income.
Smooth access to transit and immediacy to daily destinations does not allow for
creation of low population density in the urban areas which is dependent on
self-acquired modes of transportation.
The
unavailability of land within the cities has increased the infrastructure
projects in the suburban areas in most of the metropolitan cities in India,
with multiple residential and commercial developments dotting the skyline. This
has led to increased unaffordability in land with residences coming up in the
exteriors of the suburbs, thus impacting not just the affordability of the
residential market prices but also the travel and recreational costs.
Neighbourhoods
that make for poor transit lead to traffic congested cities, long commuting
hours, higher air pollution, increased green house emissions and significant
decline in open spaces. Vis-a-vis, neighbourhoods that are well connected are
more efficient since they connect residents to shopping, work and recreation
without straining or while limiting the strain on the available natural
resources and on the public transit system thus making for better communities.
In the Indian real estate information
inefficient market, majority of the sellers tend to misrepresent and use unfair
practices to sell to purchasers. Indian cities rank differently on various
parameters of real estate transparency. Coupled with multiple taxes like
service tax, valued added tax, minimum alternate tax, stamp duty, property tax
etc., and unavailability of reliable and easy methods of property tax
calculation with different regulations in different states makes it difficult
for the buyer to make an informed choice. Add to that certain disputes in taxed
being imposed onto real estate developers and purchasers.
Real estate
brokers and agents are integral to this industry, but India lacks a national
association to provide certified licenses to brokers and regulate their conduct
through education and ethics. This has led to this particular sector being
unregulated and unorganised, thus leading to high search time and costs for the
online real estate purchaser.
This comment has been removed by the author.
ReplyDelete
ReplyDeleteNice post goodd inforamtion thanks for sharing
Flats in Kochi
Flats in Ernakulam
Apartments in Kochi
Apartments in Ernakulam
Great content material and great layout. Your website deserves all of the positive feedback it’s been getting. Virtual Staging
ReplyDelete