From following the Zamindari system to renting out office-spaces to working professionals for modern and focused work output, the Real Estate market in India has come a long way. Being the largest democracy and the second-largest populous nation, India has experienced a major boom in the Real Estate sector post-independence mainly after the 1990s. A lot has been observed and said by the experts about the industry and a lot is going to be remarked but, one thing that is sure about the industry is its ever-growing market. After a major surge in the 1990s due to economic globalization, many industry leaders and organizations developed spaces into some of the metropolitan cities experiencing exponential growth.
But, that’s not the history of this market. India was a freed nation in 1947 and a massive change took place post-independence in almost all the sectors and markets of the nation. Let’s talk about the Real Estate market for a while.
Post-Independence – 1980s
It all started after Lahore was drawn as a part of Pakistan due to the Radcliffe line. One of the most prolific and diversified cities, Lahore was the hub of gatherings and people, coming to the city for their businesses during the struggle for independence. However, after the inclusion of Lahore in Pakistan there was a void in Punjab for a major city. And hence, the 1950s – 1960s is known as the period of new capitals for states such as Punjab, Gujarat, and more. India was still a poverty-ridden country in the late 1960s which didn’t lead the Real Estate market towards major growth in the country.
Chandigarh was one of the early planned cities in the post-independence period which was a major success during the 1970s. It was influential for a fresh and increased township and cities across the country as Chandigarh was not only a success for people living in the region but also, across the globe.
Before the 1980s the country didn’t experience much action in the real estate market. People were destabilized majorly due to the exploitation from the hands of Britishers and later through the claws of landlords. The need for independent stakeholders and investors were felt in the market. To boost the residential industry in the country the Central Government established the Housing & Urban Development Company in 1970, City & Industrial Development Corporation in 1971 as well as the National Housing Bank in 1988.
1990 – 2000
Economic liberalization was the major highlight of this period. It happened in 1991 which opened up new avenues for the multinational companies entering India and foreign investors as well as stakeholders to invest in the Indian market. The country experienced a surge in skyscrapers, commercial buildings, growth of urbanization, and civilized lifestyle. The rate of demand increased due to the growing population as well as more and more people shifting to the town-side for better opportunities and lifestyle. Families dropped down from ‘Joint’ to ‘Nuclear.’ The rate of urbanization climbed from 23.34% in 1980 to 25.72% in 1991.
2000 – Today
Fast forward to the times when supply mechanics started playing an important role in the sector. The concept of the nuclear family was on the rise and hence the demand for residential spaces increased parallelly. The Mall concept was introduced throughout the country from the early 2000s through its first Mall known as the Spencer Plaza in Chennai. IT companies were set up in various metropolitan, Tier II, and Tier III cities after the advent of technology and the Internet. After 2006, the Indian Government sanctioned the modernization of its Brownfield Airports like Mumbai and Delhi along with Greenfield airports like Bengaluru which led to a high increase in the real estate development around the airports. The Real Estate Investment Trusts (REITs) were also introduced in 2014 which allowed investors with a limited budget to make safe investments. May 1st, 2017 saw one of the biggest takes in the recent times of the real estate sector- the government passed the Real Estate (Regulation & Development) Act or RERA to boost the development of cities which eventually made an advantage to the home buyers as well.
Today, the real estate industry has made a significant effect on the market. It has the second-largest contribution to the Indian economy. It is also second on the list of job creation and workforce in the Indian market.
Future and Beyond
India is on the path of rapid urbanization and a quality lifestyle. It is still a growing economy but sooner than later we’ll have it figured out. With more and more people moving to the town and cities for quality and a better lifestyle, the housing sector will play a greater role here. As Russel Sage quoted “Real estate is an imperishable asset, ever-increasing in value. It is the most solid security that human ingenuity has devised. It is the basis of all security and about the only indestructible security,” the industry can never perish.