The real estate industry is one of the main growth drivers of the Indian economy and plays a vital role in the country's GDP growth. It is one of the most famous industries in the world. It has created millions of direct and indirect jobs and supports the development of the country. It consists of 4 sub-sectors: housing, commercial, retail, and hotel. The growth of this sector is very consistent with the growth of the corporate sector and the demand for office space and urban and semi-urban housing. The real estate industry in India ranks third among the 14 largest industries that directly and indirectly affect all economic sectors. 2019 is the ups and downs of the Indian real estate industry, and a number of tax guidelines and announcements have been issued in the past year. The market is affected by the current non-bank financial company (NBFC) crisis, which has led to a liquidity crisis and slow sales recovery. On the other hand, the successful launch of India's first real estate investment fund (REIT) has opened up new opportunities for real estate investment. At the same time, standard operating procedures in multiple states have significantly reduced the burden on the real estate industry. After political reforms such as demonetization, RERA and GST in 2017, the real estate market is absorbing the impact of these changes and embarking on a road to recovery. Thanks to increased investor confidence and better policy reforms, India maintains its position as the fastest growing economy in the world. The growth of the Indian real estate market in 2019 was driven by many factors, including technology. The real estate industry is expected to attract more and more NRI investments in the short and long term. The real estate industry has experienced ups and downs in 2019. The residential segment, while luxury condominiums continue to record moderate sales. In contrast, most of the investment entered the commercial sector during this year end. Other asset classes, such as storage, collaborative work, and coexistence, are becoming more and more important. The government has taken some measures Looking back on 2019, we cannot deny that the government has not made serious efforts to strengthen the industry .A number of reforms and policy changes have been adopted, including: Lowering the goods and service tax rate for affordable housing to 1%, and reducing the goods and service tax rate for apartments/housing under construction to 5% Announcing that the NHB will increase the flow of corporate financing Fund to create an alternative investment fund 250 billion rupees suspended housing project repurchase interest rate continuously reduced to a 9-year low (a total of 135 basis points in 2019) First-time homebuyers tax-free, retail brand foreign direct investment rules relaxed, government reduced corporate tax rate to 25 .17% and 30% are existing companies, and 15% and 25% are new manufacturing companies. The integration of the residential sector will continue in 2019. Those developers that are on the verge of bankruptcy or suspend their projects continue to enter the market through joint development or mergers. In the past year, technological progress in the real estate industry has also increased. After reforms after 2017, such as the Real Estate Development and Regulatory Act (RERA), inventories in all markets continue to increase. New releases are affected. The increase in unsold inventory is worrying because liquidity issues and the deadline set by RERA make it difficult for the project to proceed. Since the beginning of this year, unsold inventory has been declining, which is a positive sign of the industry's recovery. It should continue to decline to normal levels in 2020.Another major driver of sales growth is the rise in real estate prices. Looking ahead, we see investors, funds and lenders showing confidence in the financing of future projects. If employment improves and inflation is controlled, the industry's recovery is imminent. 2020 may be a year of exchange rate changes. The market size is expected to reach US$1 trillion by 2030. It will reach 120 billion U.S. dollars in 2017 and will account for 13% of the country's GDP by 2025. The retail, hotel and commercial real estate industries are also growing significantly, providing much-needed infrastructure for India’s growing demand. In the residential sector, among the 230,000 new units launched in 7 major cities in 2019, it is estimated that nearly 40%, or about 92,000 units, will be affordable.
