Real Estate Sector in India: Challenges and their Solutions

Ms Sakshi Gupta

Real Estate Sector in India: Challenges and their Solutions

Keywords : FDI, Problems face by Investors, REIT, RERA, and Public Private Model


The real estate sector is one of the most globally recognized sectors. In India, real estate is the second largest employer after agriculture and is slated to grow at 30 per cent over the next decade. The real estate sector comprises four sub sectors - housing, retail, hospitality, and commercial. The growth of this sector is well complemented by the growth of the corporate environment and the demand for office space as well as urban and semi-urban accommodations. The construction industry ranks third among the 14 major sectors in terms of direct, indirect and induced effects in all sectors of the economy. The Indian real estate sector has witnessed high growth in recent times with the rise in demand for office as well as residential spaces. But this sector also face severe problems. Though the government take various initiative to resolve the problems of the investors. Government also permit the FDI to make 100% investment in this field, but still this sector face problems. So, in this article, we present the problems face by the investors and their private and government solutions to promote the sector. Though after the demonetization, this sector run in downward direction but they have opportunity to boost the market because in India, there is highly demand of residential and commercial properties especially low cost property. Today’s, contribution of this sector in GDP is 5-6 %,to increase their contribution, government take intervention in this sector and resolve the problems of the investors, so that the real estate sector also increase their contribution in the development of the country.


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