Infrastructure trends that influence Real EstateInfrastructure is an indispensable part of development Essay

Infrastructure trends that influence Real EstateInfrastructure is an indispensable part of development as it is a direct or indirect requirement of rapid urbanization. With the increase in the number of people wanting to live in the city, there is a huge demand in the real estate sector to cater the economic development and social welfare. Indian economy is highly driven by the infrastructure sector, with real estate being the second largest employer after agriculture. The sector has been contributing around 5-6% to India’s GDP and is expected to increase by 13% in 2025.

The infrastructure has a huge multiplier effect on the dependent sectors like real estate, construction material industries, construction machinery, IT for technology intervention, etc. and to match up with the robust demand, various policies have been initiated by Government of India. Initiatives like Smart City Mission, Housing for all by 2022, and AMRUT provides a wide opportunity for this sector. With certain progressive regulatory reforms like RERA (Real Estate Regulation Authority), GST (Goods and Service Tax), the formation of REIT (Real Estate Investments Trusts), and FDI (Foreign Direct Investments) will have a positive impact.

Don't use plagiarized sources. Get Your Custom Essay on
Infrastructure trends that influence Real EstateInfrastructure is an indispensable part of development Essay
From as low as $9/Page
Order Essay

Also, in the recent Union Budget for 2019-20, the government has allocated INR 4.56 lakh crore for the sector. The increased transparency due to regulatory reforms will further attract more global and Indian investors. Real Estate and Development Act (RERA) will enforce accountability and transparency from the developers’ side, further increasing the confidence of consumers. Introduction of Goods and Services Tax will impact the running of the developer’s business and the latest revision of Input Tax Credit (ITC) in GST on residential segment has slashed, which will increase the sales. Input Tax Credit has been introduced to prevent a tax on tax at various stages of the transaction and it is expected by the developers to transfer the benefit to the buyers. With the debut of REITs (Real Estate Investment Trusts in India), it is expected to increase the confidence of global investors in the Indian market, especially for the commercial segment. FDI (Foreign Direct Investments) has increased attracting global players to invest in India with its growing reputation as it is one of the fastest growing economies. With the maximum number of sectors being permitted with automatic route without government’s approval for non-resident investors and few through the government route.With the growing population, steady demand due to rapid urbanization, emergence of nuclear families, increase in household income, and education hubs & job opportunities in Tier I & II cities are some of the key factors for the growth of the real estate sector. The increase in micro-market and with the availability of huge land parcels, tier II cities are emerging as an affordable alternative for metros, attracting developers and buyers significantly. Even with the present NBFC (Non-Banking Finance Companies) crisis which has impacted the liquidity flow, some real estate trends are expected to show growth in the present market. Major being the affordable housing, sustained office demand, co-working spaces, co-living spaces, and senior housing.Affordable housing getting the infrastructure status has increased the demand for low-cost homes. Also, with the revised qualifying criteria the mission of Housing for All by 2022′ seems more attainable now. The four verticals under PMAY (Pradhan Mantri Awas Yojana) and constant monitoring by CSMC (Central Sanctioning and Monitoring Committee) provide accountability. The growing economy has sustained office demand contributing more to the commercial real estate sector and provides investment opportunities. Co-working spaces demand has grown considerably in recent years providing flexible working spaces at affordable rents. The increase in the startup community and even economic development are the emergence factor of co-working spaces, and the demand of this sector is expected to grow in the coming years. Similarly, the need of co-living spaces has increased with the growth of the urban workforce and undersupply of student accommodation in tier I & II cities. Unlike the earlier paying guest and hostel accommodation, co-living spaces provide better amenities and combined utility bills. Another emerging trend in the real estate sector is senior housing/retirement homes. This segment provides facilities which make the elderly’s life safe, secure and comfortable. The designs provide services as per the requirement of age to make senior citizens life easier and hassle-free.Further, it’s a largely observed fact that infrastructure development has a positive impact on the adjoining areas as the value of properties increases, which directly influences the market. The development project becomes a value capturing entity for the adjacent properties and works as a value proposition by developers. Certain infrastructure development projects like airports, SEZs, ring roads, metro, etc. positively impact the larger segments by providing employment opportunities, affordable housing, and better public transport facilities. For example, residential sale rates near Gurgaon, showed around 90-100 % increase due to the new connection from national capital via Delhi Metro, whereas other areas around Delhi-NCR showed an increase of 30-40% in the same period. With the recent announcement of Noida International Airport in Jewar, the land prices are expected to appreciate by 15-20% as per Zee Business report, and the investor can anticipate a return of around 120% within five years by the time airport becomes operational. It is even expected that the airport project might improve the housing sector situation of Noida where the developers are facing issues of unsold houses from a long time. This project will further attract other infrastructure development projects like metro rail connection and dedicated rapid rail transit system connectivity to a major bus transit system in the NCR region. On the other hand, certain infrastructure development projects might have negative impact as well. Projects like airports, railway station, bus terminus, etc. can lead to constant noise and crowded locality which becomes undesirable for the residential segment. Along with the social impact these projects even have environmental impacts and contribute to air pollution as well.Therefore, infrastructure development has both positive and negative impact, and investment should be done as per property appreciation dynamics and feasibility study. India is one of the developing nations which will have a considerable growth in the real estate sector, providing more employment opportunities and significant contribution in GDP.

The Homework Writings
Order NOW For A 10% Discount!
Pages (550 words)
Approximate price: -

Our Advantages

Plagiarism Free Papers

All our papers are original and written from scratch. We will email you a plagiarism report alongside your completed paper once done.

Free Revisions

All papers are submitted ahead of time. We do this to allow you time to point out any area you would need revision on, and help you for free.

Title-page

A title page preceeds all your paper content. Here, you put all your personal information and this we give out for free.

Bibliography

Without a reference/bibliography page, any academic paper is incomplete and doesnt qualify for grading. We also offer this for free.

Originality & Security

At thehomeworkwritings.com, we take confidentiality seriously and all your personal information is stored safely and do not share it with third parties for any reasons whatsoever. Our work is original and we send plagiarism reports alongside every paper.

24/7 Customer Support

Our agents are online 24/7. Feel free to contact us through email or talk to our live agents.

Try it now!

Calculate the price of your order

We'll send you the first draft for approval by at
Total price:
$0.00

How it works?

Follow these simple steps to get your paper done

Place your order

Fill in the order form and provide all details of your assignment.

Proceed with the payment

Choose the payment system that suits you most.

Receive the final file

Once your paper is ready, we will email it to you.

Our Services

We work around the clock to see best customer experience.

Pricing

Flexible Pricing

Our prices are pocket friendly and you can do partial payments. When that is not enough, we have a free enquiry service.

Communication

Admission help & Client-Writer Contact

When you need to elaborate something further to your writer, we provide that button.

Deadlines

Paper Submission

We take deadlines seriously and our papers are submitted ahead of time. We are happy to assist you in case of any adjustments needed.

Reviews

Customer Feedback

Your feedback, good or bad is of great concern to us and we take it very seriously. We are, therefore, constantly adjusting our policies to ensure best customer/writer experience.