Real estate is one of the sectors with the highest level of global recognition. Its four subsectors are housing, retail, hospitality, and commercial. After the agricultural sector, the real estate industry employs the second-highest number of people in India. Between 2019 and 2040, the real estate market will grow from ₹12,000 crores (US$1.72 billion) to ₹65,000 crores (US$9.30 billion). The Indian real estate market has also been significantly influenced by foreign investment. Due to the potential for long-term growth, several significant foreign investors have recently poured money into the nation's real estate market. This has supported market stability by offsetting any decline in domestic demand. Due to the increased need for apartments to meet the country's expanding population, the housing market in India is predicted to experience significant market expansion in the upcoming years. Growing consumer disposable income brought on by economic expansion is likely to increase consumer confidence. They may be more inclined to purchase pricey homes in prosperous cities as a result, raising their level of living. Given the size of the market, manufacturers, real estate investors, and other foreign corporations are looking for expansion prospects in the nation. Despite a collapse in the global housing market, real estate experts say that 2023 will likely be a year of expansion and growth for the Indian housing industry, in part because of the stability of the economy and strong end-user residential demand. Favourable demographics are also at play, with a young population that is urbanising more and looking for dwellings of higher quality. In the first quarter of 2023, the real estate market in India, which has been booming since the Covid-19 pandemic, is anticipated to maintain its growth momentum. India cannot be dissociated from the likelihood of a recession in the world's largest markets, including the US. Layoffs might have some effects on the Indian market, which could therefore cause the demand for homes to decline. The Reserve Bank of India (RBI) also increased base interest rates in December, bringing them to 6.25% for the fifth time in seven months. So, it is expected that banks will pass on the higher interest rates to the general population, increasing the cost of home ownership. In addition, experts forecast that many consumers won’t have the option of extending the terms of their home loans without increasing their EMIs as a result of the recent four interest rate rises. By the end of this quarter, the housing index in India is predicted to reach 120 points. Predictions state that the India Residex House Price Index will generally trend toward 120 points in 2023. The real estate industry needs tax and policy-related relaxations in the Union Budget 2023 to maintain demand in the housing segment. Since obtaining clearances from different authorities disproportionately increases the cost and time from concept to commissioning, a single-window clearance system should also be implemented in the real estate industry. Controlling rising input costs is also necessary, particularly for cement and steel. In each of the top seven Indian cities, house sales, and new construction reached record highs in 2022. According to the most recent ANAROCK data, unit completions also maintained their dominance between 2017 and 2022. Almost 4.02 lakh homes were finished in these cities in 2022, which is roughly 44% more than the 2.79 lakh units finished in 2021. The stifling effects of the recession will soon be felt throughout the entire planet. It appears reasonable and appropriate to call for raising the price cap on projects that provide affordable housing. This will benefit both purchasers and developers. Developers that are guaranteed certain rewards are more likely to build affordable housing projects that will appeal to purchasers with middle-class incomes. Thank you.
Very well written!!
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