Page 62 - Kolte Patil AR 2019-20

Optimism for the real estate market in India

Increasing urbanisation Rise in nuclear families Increase in incomes
The rate of urbanisation in India Family nuclearisation is projected to The nominal per-capita net national
was pegged at 34.03% in 2018 and add 6-7 million households every year, income during FY20 was estimated
is projected to increase to 39% by which in turn, could drive the demand at C1,35,050, a rise of 6.8% compared
2030. This growth is expected to drive for homes. to C1,26,406 during FY19. Per capita
demand for housing and commercial income is projected to increase by
spaces. 5% annually, increasing domestic
consumption

Demographic dividend Changing lifestyle Rising investments
India’s population among the youngest The Indian population is exposed to It is projected that India could receive
in the world. By 2022, the median age global lifestyle trends, including a an investment of USD 6.5 billion in the
in India will be 28 years, compared to desire in them to live better. This has real estate sector in 2020, 5% higher
37 in China and United States. resulted in an increase in investments than 2019. This rise in investment has
in larger homes and home décor. been driven by the growing demand
for commercial office space from the IT
sector.

Smart City Mission Pradhan Mantri Awas Yojana Rising UHWIs
The Union Government is all set to roll The Government of India (GoI) The number of ultra-high-net-worth
out Smart City Mission 2.0. Through launched the Housing for All under the individuals (UHNWIs) in India is
this, mission the government aims Pradhan Mantri Awas Yojana (PMAY) in estimated to grow by 73% in the next
to expand the Smart City Mission to June, 2015. During the period 2014-20, five years, almost doubling the count
all 4,000 cities in the country. This 30 Lakh houses were built under PMAY to 10,354 from 5,986 in 2019. Indian
will drive the demand for better (U) and 1.41 Crore houses under PMAY UHNWIs invested 20% of their wealth
infrastructure. (Gramin). The government approved into properties.
over 6.5 Lakh houses under PMAY
(urban) in FY20, increasing houses
sanctioned under the scheme to over 1
Crore.

Housing shortage Improved borrower affordability
According to Ministry of Housing and Home buyers receive tax incentives on
Urban Affair, there was an affordable home loans for principal and interest
housing shortfall of approximately 10 payment of home loans. Tax incentives
million houses. on home loans for principal and interest
repayment and the subsidy under CLSS
for economically weaker sections, low
income groups and middle income
groups is expected to drive the demand
for housing units.

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