Page 62 - Kolte Patil AR 2019-20

Optimism for the real estate market in India
Increasing urbanisation
The rate of urbanisation in India
was pegged at 34.03% in 2018 and
is projected to increase to 39% by 2030. This growth is expected to drive demand for housing and commercial spaces.
Demographic dividend
India’s population among the youngest in the world. By 2022, the median age in India will be 28 years, compared to 37 in China and United States.
Smart City Mission
The Union Government is all set to roll out Smart City Mission 2.0. Through this, mission the government aims
to expand the Smart City Mission to all 4,000 cities in the country. This
will drive the demand for better infrastructure.
Housing shortage
According to Ministry of Housing and Urban Affair, there was an affordable housing shortfall of approximately 10 million houses.
Rise in nuclear families
Family nuclearisation is projected to add 6-7 million households every year, which in turn, could drive the demand for homes.
Changing lifestyle
The Indian population is exposed to global lifestyle trends, including a desire in them to live better. This has resulted in an increase in investments in larger homes and home décor.
Pradhan Mantri Awas Yojana
The Government of India (GoI) launched the Housing for All under the Pradhan Mantri Awas Yojana (PMAY) in June, 2015. During the period 2014-20, 30 Lakh houses were built under PMAY (U) and 1.41 Crore houses under PMAY (Gramin). The government approved over 6.5 Lakh houses under PMAY (urban) in FY20, increasing houses sanctioned under the scheme to over 1 Crore.
Improved borrower affordability
Home buyers receive tax incentives on home loans for principal and interest payment of home loans. Tax incentives 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.
Increase in incomes
The nominal per-capita net national income during FY20 was estimated at C1,35,050, a rise of 6.8% compared to C1,26,406 during FY19. Per capita income is projected to increase by 5% annually, increasing domestic consumption
Rising investments
It is projected that India could receive an investment of USD 6.5 billion in the real estate sector in 2020, 5% higher than 2019. This rise in investment has been driven by the growing demand for commercial office space from the IT sector.
Rising UHWIs
The number of ultra-high-net-worth individuals (UHNWIs) in India is estimated to grow by 73% in the next five years, almost doubling the count to 10,354 from 5,986 in 2019. Indian UHNWIs invested 20% of their wealth into properties.
60 | Kolte-Patil Developers Limited