Expressing certainty over Government’s strategic real-estate initiatives, sector hailed the stupendous victory of Narendra Modi-led NDA government in General Elections 2019 as a vote for growth and development.
Citing initiatives such as “RERA”, “GST” as well as ‘Affordable Housing’ all into action by ending in 2022, the sector expects institutional-specific investments to a high double-digit as much as $10 billion by the end of fiscal 2019.
The potentiality of reforms also being reflected in form of investments reaped by the Real Estate sector, out of the institutions’ total investment of $30 bn during 2009-2018,$20 bn was being invested between 2014-2018. In the same period, the foreign direct investments share more than doubled to 70% in 2018 from 32% in 2009.
In addition, the country soon likely to witness fresh REIT launches. Constructive REITs made bold reforms since July 2014 deliver a successful listing of India’s REITs. The world's leading real estate advisory firm JLL had anticipated that Indian office space – now holds huge potential with high ROIs.
- Under Pradhan Mantri Awas Yojana [PMAY], over 6.85 Million houses being sanctioned in Dec. 2019
- In Feb. 2018, the conception of National Urban Housing Fund (NUHF) had been approved with a budget outlay of 60K crores (US$ 17.5 billion)
- Under Pradhan Mantri Awas Yojana [PMAY], 1,426,485 houses had been sanctioned in the year 2017-18. In Mar 2018, the conception of an additional 3, 20,556 affordable houses being sanctioned under this scheme.
- Nearly 5.1 million sq. ft. of office space became fully operational against the top seven major cities in 2018.
During Modi's first term, the government gave a decisive impetus unfolding all-around infrastructural development, great policy overhauls like DeMo, GST and RERA, amended previous Acts such as Insolvency and Bankruptcy Code (IBC) along with other envisioned schemes including Housing for all, 100 Smart Cities, AMRUT Cities, Make in India and so forth.
With Modi 2.0, we see fairly robust momentum most recently would not only maintain a pace of growth but also escalate speed. Some of these governments' initiatives undoubtedly will sail through to the conclusive stage of their journey.
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