The real estate industry in India savor under the sun because of two prime reasons. First, because the young generation considers it as the safest mechanism of investment that would yield greater benefits in the future and secondly, because of the dream of the consumers to buy a dwelling unit that would make their life safe and secure. Being prudent about this trend, the developers keen to build dwelling units that match with the pockets of the customers. Real estate itself a broader concept as it includes dwelling units, retail shops, multiplexes, restaurants, apartments and theaters in its sphere. Here, much emphasis has given in the dwelling units as it is the basic need that include the need of the vast population.
City suburbs are in focus
Since, the big cities getting crowded with high-priced dwellings and living settlements, it becomes difficult for an average consumer to buy properties that suit their budget and purpose. Hence, the focus of the developers are in the suburbs of the big cities. This trend went viral for the last few years because both the consumers and developers have mutual benefits in it. While the developers successful in delivering dwelling units at a cheaper price, the customers seem satisfied as this suit their low-budget. Though they need to commute to the cities from the suburbs for their regular work, but today, availability of different mediums of conveyance easier than before. Hence, investing in properties that are in the suburb is one good option available for the consumers today.
Why genuine consumers could not buy in their prime localities
A question may arise at this point that who buys the flats constructed in the heart of the big cities? Well, the answer again is the end consumers like you and me but with a slight deviation. Most of these consumers include the NR I’s or the non-resident Indians. Besides, consumers do not mind shifting between cities provided they get the best by spending less compared to the city where they belong. Moreover, the developers too comes up with attractive schemes and plans to attract more of these consumers. They do not lag behind gifting cars, early booking discounts, etc., to the end consumers. All these sum up deprivation of the genuine customers from purchasing new flats in their own localities.
Location and amenities hold the key
If a building or a housing project stands on any of the prime locations of the city, with all the ultra modern facilities available within the reach of consumes sells like a hot cake. However, the promoters need to give exposures to those properties which has the inferior plans, low quality designs and awkward locations. The exposures are given through printed materials, media, big hoardings etc. Hence, as a consumer, one should not get surprised if an offer comes to buying a flat at a throw away price.
Problems of the real estate industry
By now, having gone through some basics of the real estate industry and why this industry would never die out soon, we should now check out some of the problems that it goes through.
Sometimes, unavailability of the building raw materials bring a major hurdle to the industry. Not only it does inflate the price of the dwelling units at par, but affects the complete cycle of the demand and supply of the real estate sector. For instance, the recent ban on the mining of sand and its transportation has affected the industry. Besides, the fear of any legal action cropping up from the irregular payment of the government regulation fee etc., is always a matter of concern for the builders.
The real estate sector, India and the government
India has always dominated as a suitable place for the builders because of its location, huge demand for housings etc. Besides, the young investors consider investing in this sector more secure and luring than investing in Post Offices and Banks either for a long-term or a short-term period. However, factors like the unequal distribution of income and wealth, the economic condition, inflation, etc., devoid most of population from getting a suitable house for themselves. The government could play a big role here and made suitable housing facilities available to the most. It could take the initiative to surface those people who skip away from paying proper taxes to the government.