Good Inflection Point For Real Estate Industry: Jyoti Gadia, MD, Resurgent India
The real estate industry is witnessing rapid growth across the country. Real estate development once restricted to big and metropolitan cities, has started progressing towards smaller towns and cities owning the demands of availability of bank loans, higher incomes and improved standard of living.
Today, Delhi-NCR accounts for nearly 30 per cent of the total mall supply in India. The cities including Bengaluru, Mumbai, Kolkata, Pune, Hyderabad and Chennai account for the demand of around 53 per cent of total mall space.
Real Estate Regulatory Authority (RERA) Act was passed in May 2016 to facilitate the process of home buying. The act addresses the concerns of buyers, brokers, builders and other related stakeholders of the real estate industry.
The National Real Estate Development Council (NAREDCO) has organised its first edition of the Naredco finance conclave to discuss the financial aspects of real estate among the bankers, national and international fund houses on Friday. The council was established under the aegis of the Housing And Urban Affairs Government of India in 1998.
During the seminar, Jyoti Prakash Gadia, Managing Director, Resurgent India presented his views on the current real estate scenario and ground realities stating that the real estate industry is viewed from three perspectives- customers, investors and bankers.
According to Affordability Index by Knight Frank which tracks the Equated Monthly Installment (EMI) to total income ratio for an average household has released a report that 30 per cent of household saving in 2020 has reduced to 28.4 per cent in the present day, while equity market has increased to 4.4 per cent from 2 per cent.
"Affordability index of all the major countries of the city is becoming far more affordable in the last decade. Real estate prices are not rising comparatively, meanwhile, people's incomes are increasing. This sums up as a good inflection point for the real estate industry," Gadia said.
