By Arjunpreet Singh Sahni, Executive Director, Solitaire Group
As it has already been estimated in different projections that the country’s population is expected to soar to 590 million by 2030 and so, it is imperative to make heavy investments in the next one decade over modernisation of the urban infrastructure. The requirement of rapid infrastructure development in smaller cities and towns is also increasing due to growing demand for quality housing on the back of higher earnings and improved standards of living.
Predominantly in the segment of second homes, or retirement homes, tier-II and III cities are already experiencing rising demand coming from service sector. Whatever be the reasons, all this reflects a healthy trend and positive outlook for both real estate and infrastructure sectors in India for sure. Already the industry has wholeheartedly welcomed the implementation of the much awaited Real Estate Regulatory Act, 2016 (RERA) which is a landmark development in the history of the sector. Apart from bringing a paradigm shift in real estate sector, the act has also infused a lot more confidence and positivity among the homebuyers.
Hence, with the implementation of RERA, the demand for real estate development is also set to rise, particularly in tier-II and III cities across the country. Meanwhile, envisioning expected boom in real estate sector, several large global investors have either already partnered with local investors, or gearing up for collaborations with leading players. Together they aim to participate in the construction of state-of-the-art luxury apartments, row houses, or premium residential villas development.
Witnessing excellent opportunities, private equity players are also looking to enter real estate sector in India. Real estate in the country has already witness increased recognition as being one of the key drivers of economic growth. However, one of the biggest hurdles in the way of speedy real estate development is unavailability of proper infrastructure.
A positive outlook for the real estate sector can’t be ascertained unless all its fundamental growth drivers are in place. With increasing disposable income, a healthy growth in demand for real estate in Tier II and Tier III cities is already being witnessed. In such a scenario, it is important that infrastructure development is also augmented in these cities, so that the target of fast track urbanization can actually be achieved.
For example, Yamuna Expressway destination, located in the south of Gautam Budh Nagar District has seen massive development. Eversince the expressway has become operational, real estate sector at this location has witnessed considerable growth. Moreover, F1 event held at Buddh International Circuit at Greater Noida has also brought the projects along Yamuna Expressway into limelight. There are a lot of international quality real estate projects launched around F1 track, including the state-of-the-art Solitairian City. Ever Since the F1 track was conceptualized along the Yamuna Expressway, the location has reaped high returns on investments. All these have been made possible only due to commendable infrastructure growth at this location.
When we discuss the requirement of well-developed infrastructure for rapid urbanization, it doesn’t only mean construction of roads and huge bridges, but it actually signifies easy availability of basic amenities and sufficient social infrastructure such as availability of healthcare centers, parks and recreation centers, among others. The government has to implement its planned initiatives quickly to improve the infrastructure in all these cities. It is loud and clear that the future of the real estate sector stands on the edifice of speedy infrastructure growth and it is also the most crucial requirement for fast track urbanization.