From Post-Independence bruises to modern skyscrapers, As our 73rd Independence Day is approaching, it would be important to acknowledge the contribution of the real estate sector in India. At present, real estate sector is growing at a very good pace, thanks to skill development and efficient construction methodologies.
We all know, how difficult process it was to integrate the nation into one, especially after the loot and destruction by the Britishers, Arab and Afghans. In the midst of this, one sector which suffered the most was the real estate as many people became homeless during the partition and it took a lot of time to recover from these wounds.
Post-independence, India developed gradually, where cities were expanded and new technologies were introduced. This has been one roller coaster for the country. To acknowledge such contribution, let’s highlight and recall some prominent moments of real estate sector post- independence.
It all started with Lahore becoming a part of Pakistan. One of the most prolific cities of India was now lost as per the Radcliff line and it created a void for a city in Punjab, India. Hence, the period between the year 1950 and 1960 is considered as the period for new capital cities such as Chandigarh, Gandhinagar, as per Mr. Jayesh Dave, Chairman of Jayraj Builders.
- Chandigarh was one of the early planned cities in post- independent India, known for its urban planning and architecture layout. The city designed by Architect Le Corbusier turned out to be a great success not just for the people living in the region but also across the globe.
- In the decade following it, The Maharashtra Regional and Town Planning Act was passed. It was for the first time an Indian state passed such a real estate law. It gave a major boost for the governments of other states to design such laws.
- Considered as one of the basic necessities, housing sector was also given enough impetus by the government of India. To bolster the residential industry, the central government established institutions like the Housing and Urban Development Company in 1970, City & Industrial Development Corporation in 1971 and the National Housing Bank in 1988.
- 1990 was perhaps the most critical time for India since the independence. Large and growing fiscal imbalances coupled with difficult monetary policies, created a serious looming economic crisis in the nation. However, the then government managed to liberalize the monetary policies. This opened up the avenue for the multi- national companies to enter India, which ultimately led to an increase in the skyscrapers.
NRI’s investment and foreign capital in the early 1990’s led to immense growth in the real estate sector, with cities experiencing exponential growth. The solution to overcrowding was realized through high rise buildings as it could accommodate more people with limited built up space.
- Now came the phase of the advent of IT companies in cities such as Bengaluru and Hyderabad in India. All thanks to Y2K bug, through which India left its imprint on the entire world.
- In 2005, India allowed Foreign Direct Investment for the first time opening newer ways of funding. It has been liberalized in the recent times, indirectly contributing to the entry of foreign developers.
- From early 2000, mall concept was fully spread throughout the country. Indians were first introduced to the organized- retail concept through its first mall, Spencer Plaza in Chennai, followed by Ansal Plaza in Delhi.
- Year 2006 saw the Indian government sanctioning modernization of its brownfield airport, such as Mumbai, New Delhi along with Greenfield airports like Bengaluru via the public- private partnership model. This led to high increase in the real estate development around the airports.
- To promote small investors, The Real Estate Investment Trusts (REITs) were also introduced in 2014, where investors with limited budget can also make safe investors.
- One of the biggest acts of the recent times in the real estate sector came in the year 2017, when on May 1st, the government passed the Real Estate (Regulation and Development) Act, known as RERA. This act has brought a transformation and empowerment to the home buyers as well.
Besides this, with Pradhan Mantri Awas Yojana, the government pushed for basic accommodation to every Indian by 2022. Through Union Budget 2019, the Government has announced additional deduction up to Rs. 1.5 lakhs for interest paid on loans borrowed up to 31st March, 2020 for purchase of house valued up to Rs. 45 lakh. In addition to this, even financial institutions like RBI's have made cut rate policy, which can only bolster the dream of the consumers looking to buy a house, he added.
With rapid urbanization, comes a greater need for the housing. So, the real estate sector in India has very huge scope in future. However, with climate change now being a reality, it would be important to use sustainable and eco- friendly materials in construction, without a compromise on the quality, added Mr. Jayesh Dave.
Hence, future real estate industry could be different and bring new reforms in the housing sector. With smart architecture and investment, we can achieve greater heights in infrastructure- based development.