India’s housing sector is witnessing in all probability the “greatest growth” in the last one and half decade driven by various factors such as affordability and customers aspiration to own homes, HDFC Capital Advisors Managing Director and CEO Vipul Roongta said on Tuesday.
Addressing a real estate summit organised by FICCI, he noted that the residential real estate segment has revived strongly after going through a lot of pain due to new realty law RERA and demonetisation.
“In the last one and half decade, I think this is probably the biggest boom I am personally seeing as an organisation on the residential segment, whether it is affordable mid-income and premium housing properties,” stated Roongta, who can also be Co-Chairman, FICCI Real Estate Committee.
He stated the true property builders have been made accountable below the RERA for completion of tasks and they might be behind bars in case of default.
Post-Covid pandemic, Roongta stated the purchasers are upgrading their houses, when it comes to high quality in addition to dimension.
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He stated the housing demand is especially centred round reasonably priced and mid-income within the nation.
When requested in regards to the causes for the growth, Roongta stated, on the sidelines of the occasion, the demand is pushed by “aspiration and affordability” besides demand-supply mismatch.
He said this is the right time to develop housing projects in affordable and mid-income categories.
Roongta said the demand is buoyant despite an increase in the mortgage rate in the last one year.
HDFC Capital Advisors has launched USD 3.2 billion real estate fund for affordable housing, Roongta said, adding that 85 per cent of the capital has already been committed.
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”.
“With growing urbanisation from 12 to 30 per cent, the following 20 years may see extra improvement than within the final 50 years,” Narayan said.
Narayan also alluded to changes in construction technologies, highlighting the government’s “consistent stand on reducing carbon emissions and improving energy efficiency” and inspiring the business to “undertake higher and resource-efficient building know-how”.
He asked the developers to adopt new construction technologies for faster completion of projects.
Raj Menda, Joint Chairman at FICCI Real Estate Committee and Corporate Chairman at RMZ Corp, said, “after consecutive years of slowdown in the sector, last year witnessed unprecedented growth by reaching a new historical height in the commercial office segment”.
He added the extraordinary demand of flex house from medium and enormous enterprises additional propelled the sector development.
Arun Chawla, Director General at FICCI, stated, “with a rise in urbanisation and family incomes, the demand for residential actual property has seen an unprecedented surge. As a outcome, India is now among the many high 10 price-appreciating housing markets internationally.”
According to property consultant Anarock, housing sales hit an all-time high last year to nearly 3.65 lakh units across seven major cities, beating the previous high of 2014.
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