Why India is best placed for the next real estate boom?
“Yes, I figured out how to make a million dollars in the real estate business. You start out with two million. Now, that’s what I call a million-dollar idea.”
Next joke, please.
A real estate software sales representative was on a pitch to an agent: “Our innovative combination CRM system and original transaction management software will cut your workload in half!”
“Sounds great. I’ll take two”, says the agent.
Okay, enough with the fun but that’s what you have been hearing and reading all around you, haven’t you? But when you see the overall Indian economy, it is evident that the same-low graph has been the daunting factor for many dominating sectors of India. Why so havoc only with the real estate? The slowing down is consistent and similar in other lucrative sector. But, in this situation, if you deal with coherent strategies, it’s certain that you will get to see the bubble i.e. boom. The survey predicts that the number of people demanding homes will be more in future. Before understanding the future market of India, let’s go into what a ‘Real Estate Bubble’ is.
A real estate bubble is a type of economic bubble that occurs periodically in real estate markets. After almost a year of few imperative reforms, the coming days are looking optimistic. When the Real Estate (Regulation and Development) Act 2016 (RERA) came into force, it brought extraordinary levels of transparency into real estate projects, reduce delays in projects, clear out unprincipled developers, and many beneficial executions. When it comes to affordable housing, Indian real estate is on an upward trajectory again. Fortunately, the experts forecast that 2018 will be a better year than the prevailing ones.
The tenacity of today’s real estate market is to re-establish the self-assurance amongst the buyers on the Indian residential real estate sector, which reiterates itself that there is more potential demand in future. The potential future demand is directly proportional to number of buyers and disposable income. Surprisingly, both factors are simultaneously rising and that’s a noteworthy element for a common man to reconsider about the proposition of residential investment he intends to do in the future.
“Buy land, they’re not making it anymore.” — Mark Twain
India’s real estate market is anticipated to touch US$ 180 billion by 2020. It has already witnessed high growth in recent times with the rise in demand for office as well as residential spaces.
Info graphic (we can represent the same statistics differently)
Homie: “Man, why are you paying 15k rent when you can buy your own house and set the EMI of 15k.”
Anti-homie: “True. But, isn’t it risky today as the real estate market is fluctuating.”
Homie: “Tell me which sector isn’t? You know what. Disposable income per person in India is increasing. So, the current youth population can easily have access to these rising wealth to buy homes in future. Do you get it?
Anti-homie: Sure, I am motivated. House is a basic need. Also, I saw in the news that the number of people to need homes will increase and that means now is the right time to buy it.
Homie: Exactly. As Louis Glickman, real estate investor, says, “The best investment on Earth is earth.”
India is a country full of youths and buying a house so that one feels secure becomes a basic necessity. Approximately, our 65% youth normally gives 10-15 solid years to build on their professions, living in rented accommodation along the way.
The number of people in the young age bracket is far higher than the people in the age group of 35 who have either settled down with a nice residence or planned to buy the house. It’s time for the youth. It’s now or never to buy the home of their dreams.