Monday, July 2, 2012

Real Estate- Blessing to the Economy

Real Estate is a real blessing to the economic growth of any country. It contributes about 30% to Indian GDP both directly and directly. The last five years has shown a great rise in the real estate business. Real Estate in places like Chandigarh, panchkula, mohali has shown a tremendous growth. Real estate has a direct linkage to various other industries like steel, wood, cement etc.The growth in real estate means a simultaneous growth in all these above mentioned sectors which leads to the complete growth of the community which extends to the country as a whole. Real estate also has indirect influence on the other very important sectors like travel and tourism, infrastructure, trade and heritage of that area. Today big companies like wipro, infosys, IBM etc are expanding their business round the globe and the favorite destination these days in India is chandiagrh, mohali, panchkula in north India.

According to the tenth five year plan, there is a gap of 30 million units between the demand and supply of housing which is quite a big gap and bridging this gap requires the investment of around 1,75,000 crore.There is huge dwelling requirement in urban as well as rural areas. It is estimated 19 million homes are required in urban areas in India. No doubt there is boom in real estate but the supply is still not meeting the demand. Various reforms need to be done in real estate business like there is a huge need in changing the regulations relating to land, validation, property taxes, validation of stamp duty structure etc.The real estate industry needs to be made a little disciplined. The environment needs to be created to establish real estate a good investment option. Government is taking steps to reform the industry but still needs a lot to be done. Government has shown its remarkable contribution by reducing home loan to almost half in the past five years.