The Biggest Housing Market Boom Since 15 Years
The housing sector in India has been witnessing a significant boom in recent times, with various factors contributing to the growth. A Capital Advisors firm in the country has reported that this boom is probably the largest in the last 15 years. The firm's Managing Director and CEO, Vipul Roongta, has attributed this growth to factors such as affordability and the aspiration of customers to own homes.
Roongta also noted that the residential real estate market has revived strongly after undergoing significant pain due to the new realty law RERA and demonetization. The accountability enforced by RERA, which holds developers accountable for completing projects and can result in imprisonment for defaulters, has been a significant contributor to the sector's revival.
“In the last one and a half decades, I think this is probably the biggest boom I am personally seeing as an organization on the residential segment, whether it is affordable mid-income and premium housing properties," said the CEO, who is also Co-Chairman, FICCI Real Estate Committee.
To cater to the growing demand for affordable housing, the firm has launched a $3.2 billion real estate fund. 85% of the capital has already been committed. Last year, housing sales in India reached an all-time high of nearly 3.65 lakh units across seven major cities, surpassing the previous record in 2014, according to property consultant Anarock.
Addressing the event, Kuldip Narayan, Joint Secretary, Union Ministry of Housing and Urban Affairs, said the size of the urban sector will double in the next 25 years.
He said the requirements for facilities, residential spaces, commercial spaces, and urban infrastructure would double, adding, "we have a lot of catching up to do in infrastructure".
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