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Real Estate- Blessing to the Economy
from: Jack ParkerReal 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.
Real estate no doubt has professional people but the number is
very low which needs to be increased to see significant growth
in the industry. The real estate industry needs to be more
transparent and organized which is improved in the past few
years but it still needs little more. But this industry has a
great potential and will grow many folds in the coming years.
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