Changing Phase of Real Estate Developers Post Independence

The real estate industry developed in leaps and bounds post independence .Real Estate Developers were in the unorganized sector with no proper guidelines but slowly this industry became highly organized sector and Government imposed several strict rules to regulate the activities of Real Estate developers. Now Municipal Corporation in different City and town, Panchayat committees in villages are there to give sanction of any construction work that takes place under the written guidelines in Building Rule Book. Real Estate Developers need to maintain certain specified open area on each side of the building constructed and also the height of the building depends on the front road width. The Building rules also define the habitable size of each room with minimum allowed roof height. Real Estate Developers also have to maintain certain thickness specified for inner and outer walls with sufficient window opening for proper ventilation. The Building rule takes care of all aspects for safety of occupants.

The Real Estate Industry contributes more than 7% to the country’s Gross Domestic Product and expected to reach 13% by 2030. The Real Estate Industry is the second largest employment sector in India after agriculture. Home buyers can now get housing loans from bank on easy terms up to 80% of the property value. Real Estate Developers maintain tie-ups with banks to provide quick processing and disbursal of Bank Loans.

Government has liberalized the rules for FDI (Foreign Direct Investment) in Real Estate Sector, which resulted in many Real Estate Developers collaborating with foreign investors and there is tremendous surge in real Estate Investment. This sector is largest support for the growth of economy. India has experienced a huge surge in Corporate Sector and Infrastructure Development thereby leveraging faster growth of Real Estate Sector in India. Indian real estate market is expected to reach USD 189 billion by 2020.