Evolution of Real Estate Sector Post Independence in India: An Analysis by Wisdom Properties

The real estate sector in India has undergone a sea change of transformation since the country's independence in 1947. This evolution can be broadly divided into four phases: the post-independence era, the liberalization period, the post-liberalization era, and the modern era. As the best real estate company in Chennai, Wisdom Properties presents an analysis of the evolution of real estate sector in India post-independence.

Post-Independence Era (1947-1991) and Liberalization Period (1991-2000)

In the immediate aftermath of independence, the government's primary focus was on addressing the housing needs of persons displaced due to the partition. The government established the Housing and Urban Development Corporation (HUDCO) in 1970 to finance housing and urban development programs. The real estate sector was largely disorganized and dominated by small time players and landlords who did not have any national footprint.

The liberalization of the Indian economy in 1991 marked a turning point for the real estate sector. The government eased restrictions on foreign direct investment (FDI) and introduced economic reforms that led to rapid urbanization and increased demand for commercial and residential real estate. The establishment of the National Housing Bank in 1988 also played a crucial role in providing an impetus to housing finance.

Post-Liberalization Era (2000-2010)

The post-liberalization era witnessed a boom in the real estate sector, driven by the growth of the IT and ITES sector, rising income levels, and easy availability of home loans. The government introduced the Real Estate Investment Trust (REIT) regulations in 2007, providing a significant boost to commercial real estate. However, the global economic slowdown in 2008 significantly impacted the real estate market. Many players like DLF started developing not only residential but also commercial real-estate projects across India.

Modern Era (2010-Present)

The modern era has seen the introduction of several regulatory reforms aimed at increasing transparency and accountability in the sector. The Real Estate (Regulation and Development) Act, 2016 (RERA) was a landmark legislation that aimed to protect homebuyers and boost investments in the sector. The Goods and Services Tax (GST) implemented in 2017 also had a significant impact on the sector, streamlining the tax structure and reducing the burden on developers.

The government's 'Housing for All by 2022' mission and the Pradhan Mantri Awas Yojana (PMAY) scheme have also played a crucial role in promoting affordable housing. The Smart Cities Mission, launched in 2015, is another excellent initiative. The COVID pandemic and subsequent work from home or work from concepts can have significant impact on commercial and residential real estate. Their impact is an ongoing study. The reals estate growth has been around 7% over the last few years and it is expected to grow even further.

Performance of real estate sector in India

The real estate sector in India has shown significant growth and performance in recent years. Despite occasional fluctuations, the market has remained resilient and attractive to both domestic and international investors. Here are some key points highlighting the performance of the real estate sector in India:

• Steady Demand: India's growing population, rapid urbanization, and expanding middle class have resulted in a steady demand for residential and commercial properties. This consistent demand has contributed to the sector's performance.
• Government Initiatives: The Indian government has implemented several policies and initiatives to boost the real estate sector. This includes the introduction of Real Estate (Regulation and Development) Act (RERA), affordable housing schemes, tax reforms, and incentives for foreign direct investment (FDI).
• Increased Transparency: The implementation of RERA has improved transparency and accountability in the real estate sector. It has enhanced buyer protection, reduced fraudulent practices, and increased investor confidence.
• Infrastructure Development: The government's focus on infrastructure development, such as the construction of new airports, highways, and metro rail networks, has positively impacted the real estate market. These developments have led to increased demand for properties in emerging areas and have contributed to the sector's growth.
• Technology Adoption: The Indian real estate sector has embraced technology, including online property portals, virtual property tours and more. These advancements have facilitated easier property searches, streamlined transactions, and increased market reach.
• Foreign Investment: The Indian real estate market continues to attract foreign investment due to its potential for high returns. The relaxation of FDI norms and the introduction of Real Estate Investment Trusts (REITs) have provided avenues for foreign investors to participate in the sector.
• Affordable Housing: The government's focus on affordable housing has been a driving force behind the sector's growth. Initiatives like Pradhan Mantri Awas Yojana (PMAY) have encouraged developers to focus on affordable housing projects, catering to the housing needs of the low and middle-income segments.

Fastest Growing Real Estate Cities in India

1. Bengaluru, Karnataka

Bengaluru, often referred to as the Silicon Valley of India, has been a major hub for the IT and technology industry. Its thriving job market, influx of professionals, and a strong demand for housing have contributed to the city's rapid real estate growth.

2. Chennai, Tamil Nadu

Chennai has experienced steady economic growth and has been attracting investments in various industries. The real estate market in Chennai has been booming, with a significant demand for both residential and commercial properties. A diversified economic base that is a mix of manufacturing and services and affordability are attracting real estate developers. Apart from the city, Old Mahabalipuram Road, Oragadam, Sriperumbudur and Guduvanchery are emerging as realty hotspots.

3. Pune

With major IT/ITeS companies setting up offices in the city along with a growing student population, there has been a real estate boom.

4. Hyderabad, Telangana

Another major IT hub, Hyderabad has experienced significant growth in the real estate market, driven by the expansion of the IT sector, infrastructure development, and increased investment.

5. Kochi, Kerala

Kochi has seen notable growth in the real estate sector, driven by the development of the IT and tourism industries.

Growth rate of the Real Estate Industry in India

The real estate industry in India has witnessed significant growth in recent years, driven by various factors. Here's a brief overview of the growth rate of the real estate industry in India:

• Impressive Growth Trajectory: The real estate in India has exhibited a robust growth trajectory, with substantial increases in property sales, new project launches, and investments. This growth can be attributed to factors such as rapid urbanization, population growth, and increased disposable income.
• Urbanization and Housing Demand: India's urbanization has been a key driver of the real estate sector's growth. As more people move to cities, the demand for housing, both residential and commercial, has risen sharply. This demand has fueled the expansion of the real estate industry.
• Rising Disposable Income: The steady growth in India's middle-class population, along with an increase in disposable income, has contributed to the growth of the real estate sector. As people's purchasing power improves, there is a higher demand for quality housing and commercial spaces, stimulating the industry's growth.
• Infrastructure Development: The Indian government's focus on infrastructure development has provided a significant impetus to the real estate industry. The construction of new airports, highways, metro networks, and other infrastructure projects has created new opportunities for real estate development and investment.
• Policy Reforms: The implementation of policy reforms, such as the Real Estate (Regulation and Development) Act (RERA) and tax reforms, has positively influenced the growth rate of the real estate industry. These reforms have increased transparency, boosted investor confidence, and streamlined processes, attracting more investments into the sector.
• Foreign Direct Investment (FDI): The relaxation of FDI norms in the real estate sector has resulted in increased foreign investments. Foreign investors have shown significant interest in the Indian real estate market, leading to improved growth prospects.

Overall, the real estate industry in India has experienced a significant growth rate due to factors like urbanization, rising disposable income, infrastructure development, policy reforms, FDI, technology adoption, and affordable housing initiatives. These factors have contributed to the sector's expansion and attractiveness to investors.

Wisdom Properties' Guidance for Plots for Sale in Chennai Amidst Real Estate Evolution

The real estate sector in India has witnessed significant evolution since gaining independence. Post-independence, the sector has experienced various transformations, and Wisdom Properties is a leading company that guides individuals in navigating these changes. As a trusted plot developer in Chennai, Wisdom Properties offers a range of plots for sale in Chennai, catering to the diverse needs of buyers. Here's how Wisdom Properties assists individuals in understanding the evolution of the real estate sector in India and finding suitable plots in Chennai.

• Expertise in the Market: Wisdom Properties has extensive knowledge and expertise in the real estate market in Chennai. With years of experience, we understand the historical trends, market dynamics, and regulatory changes that have shaped the real estate sector post-independence.
• Comprehensive Guidance: Wisdom Properties provides comprehensive guidance to individuals interested in purchasing plots in Chennai. We offer insights into the evolving real estate landscape, including information on the development of infrastructure, emerging areas, and investment opportunities.
• Tailored Solutions: Understanding that each buyer has unique requirements, Wisdom Properties offers a wide range of plots for sale in Chennai. Whether individuals are looking for residential, commercial, or investment purposes, Wisdom Properties provides tailored solutions to meet their specific needs.
• Transparency and Trust: Wisdom Properties prioritizes transparency and ensures that buyers have access to accurate and reliable information. They maintain high ethical standards, guiding individuals through the entire property acquisition process and ensuring a smooth and trustworthy experience.
• Legal and Regulatory Compliance: The real estate sector in India is subject to various legal and regulatory requirements. Wisdom Properties assists buyers by ensuring that all legal aspects, such as title verification and documentation, are meticulously handled, providing peace of mind to buyers.
• Quality Assurance: As a renowned plot developer in Chennai, Wisdom Properties emphasizes quality in their projects. They carefully select prime locations, assess the infrastructure facilities, and prioritize the development of plots that meet the highest standards of quality and sustainability.
• Customer-centric Approach: Wisdom Properties places great importance on customer satisfaction. They engage in open communication, understand the specific preferences and budget constraints of buyers, and provide personalized assistance throughout the property buying process.

Future and Conclusion

One can see from the above that the largely unorganized sector has been transformed today into a very organized, regulated and streamlined one. The future looks bright and promising. Some more challenges to address will be focus on sustainability, regulatory hurdles, registration and transaction costs. As urbanization picks up and more and more people start dwelling in cities, the major cities and their outskirts will need significant development and planning. As more uniformity is brought into the above areas, more potential can be unlocked.

Wisdom Properties is a market leader in promoting plots, villas and real estate in Chennai. The company has played a major role in the real estate industry and helped over 5000 customers realize their aspirations over the past 25 years.

Led by an experienced and professional team, Wisdom Properties assures investors of clear titles and prime locations of the property. The company is engaged in the sale of plots, villas and farmlands in different hot an upcoming location in Chennai and the suburbs like Guduvanchery, Maraimalai Nagar, Oragadam, Kanchipuram etc.

With tie ups with leading financial institutions, customers can be assured of peace of mind for the property their purchase and also of financial support in purchase of the plot. The properties offered by Wisdom Properties are free from encumbrances and have clear title deeds.

The company is forward-thinking in approach and always has the ideals of innovation, quality and transparency to achieve success. For more details, contact Wisdom Properties at +91- 93606-93606 or sales@wisdomproperties.com