Real estate to grow at over 75 percent YoY
On July 30, the Securities and Exchange Board of India (SEBI) lowered the minimum application value for Real Estate Investment Trusts from Rs 50,000 (US$ 685.28) to Rs 10,000 -15,000 (US$ 137.06 - US$ 205.59) to make the market more accessible to small and retail investors.
Capital expenditure (Capex) of Rs 5,43,559 crore is designated to be provided by the Centre and states combined under the “National Infrastructure Pipeline (NIP) over the period 2020-25” under affordable housing.
There is a manifest need to examine the impact of policy initiatives and changes in real estate encompassing the impact of financial deregulation, privatisation, functions and working of banks and financial institutions, balanced regional development, standards of living and promotion of disruptive and incremental innovation.
The report states that the delay in buying and selling of projects due to Covid-19 has been a problem for the constructors. This was further widened due to shortage of laborers and workers as people shifted back. However, with the ebbing of the pandemic, the industry is likely to gain traction. The housing price index showed that the ‘price index’ has been increasing despite the proliferation of the Covid pandemic and it was above 110 during the first wave. However, the ‘quantity index’ plummeted to less than 30 during the same period.