Realty experts predict increase in institutional investors
New Delhi, September 1 Realty industry in India is witnessing emergence as a mode of investments by consumers in both commercial and residential segment. On Wednesday, real estate experts stated that inspite of the industry being marred by several challenges, realty consumers have confidence in industry as investment option.
Speaking at the CII's 17th edition of Conference on Real Estate and Housing, Mr Sudhendu J Sinha, Advisor, Infrastructure Connectivity – Transport and Electric Mobility, NITI Aayog, said that the amalgamation of real estate development with transport and infrastructure will be key to a paradise change.
The NITI Aayog advisor also said that with growing urbanisation, real estate growth will continue to increase. He also added that aspiration of consumers will keep evolving, and demand of green buildings, designs, statists, customisation, and material has increased.
Mr. Hardayal Prasad, Managing Director and CEO, PNB Housing Finance Ltd, said, "The industry has had trouble with unsold inventories, delays in projects, negative cashflow, (realty industry) has been stuck in a rock and hard place. This is one thing that the industry is realising and responding to some of these emerging challenges."
"Real estate market is estimated to touch $ 1 trillion economy by 2030, employing around 17 million people. The ideas, trends and behaviour that could shape the real estate sector in 2030 are already perceptible today," he added.
According to Mr. Prasad, said that four major factors expected to drive India's aspired economic growth are human capital, infrastructure enhancement, strengthening of institutions, and continuity of reforms. He stated that consumers in today's time have confidence on their investment in real estate and that Real Estate Investment Trusts (REITs) have opened up new avenue to provide liquidity to developers and further attract institutional investors.
Mr. Anshuman Magazine, Deputy Chairman, CII Northern Region, observed that Covid has redefined real estate in our country and reshaped industry globally. He also said that liquidity and low interest rates has increased the demand.
"Coming to real estate, there is demand for income producing assets. What is strange, in country like India, is that the demand is not only for office, which would be income producing asset, but also in logistics, retail and data centres. And even starting slowly include residential also," he said.
