India will become the 3rd largest economy by 2020
Economic Growth will benefit Real estate in India. A more prosperous India in 2020 will be characterized by a better organized real estate industry which is transparent, efficient yet well regulated and focused on sustainable development.
By 2020 India will become the 3rd largest economy after China and the US. It enjoys many advantages that encompass an ever-increasing per capita income and a concurrent domestic consumption pace, which nevertheless leave in their wake a substantial rate of annual savings. Moreover, India’s infrastructure investments will have increased massively by 2020, significantly enhancing its attractiveness for investment.
Another chapter in India’s rapidly developing success story is the IT sector, which has been a major driver of the country’s economic growth over the past few years. By 2020, the current size of the IT / ITeS market in India will have grown from the current $67 billion to $225 billion. At the same time, the Indian retail market will once more emerge as a major force driving Indian real estate.
Billionaire industrialist Mukesh Ambani on Tuesday stated that India has become mature enough to deal with the corruption cases. He also said that an equitable income generation was a must for the country’s economic growth. “It took us 60 years since independence to be a trillion dollar economy. By 2020, we should become the third largest economy in the world,” he added.
The Real estate market, which is now valued at $500 billion, will rise to a value of $900 billion by 2020. This rate of growth is going to translate into massive additional requirements for retail space over the coming years. Demand for retail real estate rose from 4 million square feet in 2010 to 11 million square feet in 2011.
Real estate in India will also see massive demand contributions on the industrial front. The country’s industrial growth is geared to quadruple in scope and reach a value of $225 billion by 2020. Industry body ASSOCHAM called for a strong and transparent regulator for the real estate sector for an orderly growth.
India moves towards becoming the third largest construction market globally by 2020 from the current ninth position. The regulator may consider setting up a public portal for real time project monitoring of various projects on the basis of clear and well publicized benchmarks, it said as the government prepares to introduce The Real Estate (Regulation and Development) Bill in forthcoming monsoon session of Parliament to protect consumer interests against dubious operators. This will help buyers make an informed choice and facilitate comparison based on objective criteria, said The Associated Chambers of Commerce and Industry of India (ASSOCHAM).
“Project monitoring applications based on cloud computing should be encouraged as the proposed regulator removes redundancies and provides a level-playing field to all stakeholders – developers, investors, bankers and consumers,” said its secretary general D.S. Rawat.
A more prosperous India in 2020 will be characterized by a better organized real estate industry which is transparent, efficient yet well regulated and focused on sustainable development, he said.
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