Do you know? The real estate business is the most profitable business in Tamil Nadu. As per source in the last fifteen years, the commercial real estate business has taken an upturn and is expected to grow from current USD 14 billion to USD 102 billion in the next ten years. The rapid of growth of development in real estate business is the second largest employer after agriculture in India. New homes are launching inside the cities, and there would be a significant growth by providing much-needed infrastructure for India’s growing needs,
Risk factors play a significant role in every business. Real estate business is further a step ahead, and it faces greater lag in recent times due to several conditions. It takes more time for a developer to study the market, acquire the land, getting all approvals and commence the construction until finishing the project. But the Indian market still lacks the transparency and liquidity compared to mature real estate markets of international standards. There was a rise in income for growing middle-class peoples increasing the demand for quality residential real estate. Many peoples are ready to invest money on properties since it will be beneficial for future generations.
Most of the peoples are looking for considerable ground to build proper infrastructure with gardening features. They are even planning to make a home with chain link fencing supplies for more safety precautions. The valuation systems didn’t exist really regarding the cost of land, cost of construction, etc. So, the seller could command the buyers depending on their needs. The organized pricing is disappeared, and the builders are demanding prices to customers. After the introduction of GST, there was a significant impact on the amount of land and in constructions.
Real estate is one of the dynamic sectors, and we can’t expect the profit or loss at a certain period continuously. Demonetization proved to be beneficial for the real estate sector, and the Modi government have a clear plan on primary market sales, and it had a more significant impact on secondary market sales, land deals. The government of India is very interested in developing real estate sectors by introducing smart city projects and so on. Getting loans on the property is a difficult one, and you must submit a more significant number of documents for approval. Interest rates, inflation, exchange rate risks are the most common factors which clearly shown decreased volatility.
The Indian real estate sector promises to be a lucrative destination for foreign investors into the country. The maturity of real estate marketers will lead to an infusion of foreign investments. We must be more organized and become more transparency to avail opportunities which are emerging in the market. The biggest challenge today is the lack of trust among customers in the real estate business. The delivery of the project and the intention of the builder behind it are very unfair, and it solves only if they introduced any new policies and therefore the market will move towards stabilization.