Real Estate Prices to See 5-10% Annual Appreciation Over Next Few Years: CII Report
The Confederation of Indian Industry (CII) has released a comprehensive report predicting a steady appreciation in real estate prices over the next few years. According to the report, housing prices in India are expected to rise by 5-10% annually, driven by a combination of infrastructure development, economic growth, and increased demand for residential properties.
Harleen Kaur, Deputy Secretary at the Ministry of Road Transport and Highways, emphasized the role of infrastructure expansion in reshaping the real estate landscape. She stated, 'India's infrastructure projects, such as the construction of highways and urban transport systems, are significantly boosting the real estate sector. These developments are not only enhancing connectivity but also creating new opportunities for residential and commercial real estate.'
The CII report highlights several key factors contributing to the expected price appreciation. The first is the government's focus on infrastructure development, which includes the construction of highways, metro systems, and other critical infrastructure. These projects are expected to improve the quality of life in urban areas and attract more residents, thereby increasing the demand for housing.
Another significant factor is the economic growth in major cities and Tier-II towns. The report notes that the Indian economy is on a robust growth trajectory, with GDP expected to expand at a healthy rate. This economic growth is translating into higher disposable incomes, which in turn is driving demand for housing.
Moreover, the report points out that the real estate sector is becoming more transparent and investor-friendly. The implementation of the Real Estate (Regulation and Development) Act (RERA) has brought greater accountability and transparency to the market, reducing risks for buyers. This has increased investor confidence and attracted more investments into the sector.
The CII also highlights the importance of affordable housing in the overall real estate landscape. The government's 'Housing for All' initiative aims to provide affordable housing to the lower-income segments, which is expected to create a significant demand for affordable housing units. This initiative is supported by various financial incentives and subsidies, making it easier for first-time homebuyers to enter the market.
However, the report also cautions that the real estate sector faces challenges such as regulatory compliance, land acquisition, and financing. These challenges need to be addressed to ensure sustained growth in the sector. The CII recommends that policymakers continue to focus on streamlining regulations and providing support to developers to overcome these hurdles.
In conclusion, the CII report paints a positive picture of the Indian real estate market, predicting a steady appreciation in housing prices over the next few years. The combination of infrastructure development, economic growth, and policy support is expected to drive this growth, making real estate an attractive investment option for both domestic and international investors.
