There are some changes in the real estate market scenario compared to yesteryears. During 2006 and 2007, everyone rushed to buy homes but the current population is taking a careful stand and is making purchases that suit the needs rather than going with the crowd. There is also an increasing need for smaller homes, since homebuyers think that it is a prudent decision. This will have an effect in the real estate industry as the industry’s growth will also rise and keep growing steadily instead of facing a reckless and unstable growth. The growth will also be fuelled by rates that will suit the income of most of the population. The other factor to be noted here is – numerous potential customers would have postponed their plans of purchasing homes, as everyone had to exercise caution during recessionary times and cut expenses as far as possible.

In addition to the demand for residential homes, there is a growing need for office space. Since India is a major hub for outsourced jobs, Information Technology (IT) companies add more employees year after year as they receive more projects. Because of the growth in the IT industry, the need for office space is increasing in major cities across India. The other reason for the demand of office space is the growth in the retail industry. Even second tier cities are seeing a growth along with the first tier cities. The remaining portion of the office space requirement is for other commercial establishments like restaurants, shops etc.

The economical health of India relies on the real estate sector largely. The reason for this is – it is a significant contributor for the country’s GDP (Gross domestic product). Its contribution is set to increase in the near future. The sector also plays a large role in offering job opportunities to the citizens of the country. Reserve Bank of India had offered concessions for the sector and the Government had announced stimulus packages. These have some positive implication in the industry. Another boost for the sector is the development of SEZs (Special Economic Zones). The Ministry of Commerce and Industry had decided to make the procedures for developing SEZs simple enough, so that it takes lesser time to establish them.

The Parliament of India is ready to pass the bill for regulating the real estate market. This is expected to happen during this winter session, so that the real estate industry of India matches the global level. The real estate industry is looking forward to this bill for another reason too – the initial draft was not perfect and it did not include government bodies. There is a general feeling among the industry leaders that there is a need for a regulatory authority that is similar to TRAI and SEBI. If a regulatory authority comes into existence, eventually it will offer advantages for both real estate developers and the customers. It is time that the body works methodically, so that it serves its purpose. At the same time, there is no need for over-regulating the industry’s functions, since it will add to the existing problems. When the bill is passed, it will increase the sector’s transparency.