Economic study of development prospects and challenges of real estate business

Abstract

Indian real estate business is one of the largest sectors in our country after agriculture and primary sector. These sectors contribute about 6 percent to 7.5 percent and are a major source of jobs for the unorganized sector of the Indian labor market. The sector was one of the main beneficiaries of the post-liberalisation period, where India became one of the hot FDI assets, with a lot of new enterprises opening up day by day and a rapid rise in the salaries of the Indian middle class. Hui. It shows a huge growth since 1990s and Indian metro cities like Chennai Mumbai Delhi Kolkata feel the boom in realty sector. Real estate sector in India is growing at the rate of around 20 percent per annum and this sector is contributing around 6-7 percent to India's GDP but it is not able to balance the supply demand constant. The demand for housing has been increasing rapidly over the past decade. In spite of government efforts and efforts through various schemes, it has not been able to cope up with the increasing demands. Taking advantage of the situation, private businessmen usurped control of the real estate sector with almost no concern for consumer demand. Over the past decade, the sector feels a slowdown due to various factors which include business constraints, frequent changes by the government in regulatory policies, and economic slowdown. In our paper we study the present trend and pattern of various factors of real estate sectors and do critical analysis. In this paper we outline the issue and details of the actual obstruction. But also present some corrective steps which should benefit the sector and try to take it back to its glorious past where it was growing very fast.