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Property for investment or being an end user perspective.... Which option is suitable?
Hindustan Times  |  February 19, 2020

HT Correspondent New Delhi

The real estate sector is one of the most vital contributors to a country’s economy. Its acceleration depends directly on the changing lifestyle standards of the people. Real Estate in India is expected to contribute 13% of the country’ GDP by 2025. These positive changes are due to the improvement in living standards, growing demand of office spaces and the development of semi-urban accommodations.

 

Commercial office stock in India is expected to cross 800 million square feet by 2020 end while office space leasing in the top eight cities is expected to cross 100 million square feet during 2018-20. Co-working space across the top seven cities has increased sharply in 2019, reaching 43.6 million square feet. In order to revive around 1,600 stalled housing projects across the top cities in the country, the Union Cabinet has approved the setting up of an Rs 25,000 crore alternative investment fund. Under Pradhan Mantri Awas Yojana (Urban) [PMAY (U)], 1.12 crore houses have been sanctioned in urban areas creating 1.20 crore jobs.

 

Commercialisation seems to have taken a toll on the country’s economy. With MNC’s and international stores penetrating Indian market, the need to expand and develop establishments is on a rise. They are bringing increased job opportunities and offering its employees a better income. This incites the need for bigger office spaces to accommodate the growing number of employees. Additionally, many of these corporate provide jobs only in metros, the migrated workforce of these offices tend to look for the most basic need- housing in that metro city only, where their workplace exists.

 

Investment in property is a task of perseverance and patience. The current budget has opened several avenues to the buyers with its tax holiday announcement and loan relaxation. These measures initiated from the government’s end will be aiding the sales of unsold units. The end users who were indecisive about investing in property have a fair opportunity to dive in and get benefits from the government’s scheme for affordable housing. As, the property rates in the coming 5-7 years may rise up to significant high levels, purchasing a unit even in an affordable section is also a profitable deal. This real estate investment made now will develop into an asset in the coming years.