The Emergence of Startups and new Businesses are Augmenting Investments in Commercial Spaces: Amit Wadhwani The current real estate industry holds great importance in terms of generating revenue for the nation as well as business opportunities for existing and aspiring entrepreneurs
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The current real estate industry holds great importance in terms of generating revenue for the nation as well as business opportunities for existing and aspiring entrepreneurs. The industry has itself undergone constant evolution from time to time, with many investment ideas starting out as niche and alien concepts to becoming lucrative and profitable ones.
According to the latest report of IBEF, the real estate sector in India is expected to reach US$ 1 trillion by 2030. By 2025, it will contribute 13 per cent of the country's GDP. Real estate stock in India is expected to reach 3.7 million square feet in 2019, with an addition of 200 million square feet during the year.
Factors Propelling the Growth
The emergence of nuclear families, rapid urbanisation and rising household incomes are likely to remain the key drivers for growth in all spheres of real estate, including residential, commercial and retail.
Addition of more factors that might propel the growth of the real estate industry is expected with time, revamping the industry into becoming a massive and lucrative one. Thus, if you are passionate and dedicated towards operating a business in today's time, an investment in the real estate sector could well make it your favourable playground for making money.
About the Interviewee
Amit Wadhwani started his journey back in 2010 with just a couple of people in his team. Today, he not only leads a team of young, driven and high energy sales consultants but also manages a monthly sales turnover of Rs. 300-350 crore. He now commands a team of nearly 500+ people.
Amit is very optimistic about achieving the goal "Housing For All' and has already embarked on his ambitious project that supports the government initiative of "Housing For All by 2022' across India.
During an interaction with Franchise India, Amit Wadhwani, co-founder, Sai Estate Consultants Chembur Private Limited (SECCPL) shares his experience, knowledge, and thoughts at the current scenario of the Indian real-estate industry. Excerpts from the interview:
The Developing Indian Real Estate Segment
Wadhwani shared, "A certain revival has been observed within the real estate sector since last year, wherein the first of a couple of months of 2019 recorded a staggering increase in the demand for housing, along with the eventual development and construction that has been initiated. Certain principle decisions are taken by the government, such as an investment by REIT, RERA development, and REPO rate, have been working as catalysts for developers.
On the other hand, initiatives like "Housing for All', "Affordable Housing' tax rate, regulation in GST, and more are re-jigging the mentality of the homebuyer, who was fence—sitting for a long time."
Real Estate: An Evergreen Business Opportunity
"The real estate sector has made a record of $2.5 billion worth of investment in Quarter 1 (Q1) of 2019, which proves that investors trust this segment. These mammoth investments are due to positive sentiments towards reforms such as REIT, and investor-friendly amendments in taxes.
There is an apparent growth in the participation of foreign investors due to transparent investment policies. Furthermore, the emergence of start-ups and new businesses is augmenting investments in commercial spaces, thereby implying that investors are seizing every opportunity they can to reap profits from this ever-growing sector," added Wadhwani.
Tracking Customer Expectation/Demand is a Necessity
"Expectations/demands of home buyers are on a rise, and this is primarily due to the assurance and ease provided by a number of new policies as well as tax reforms. These new amendments have been positively received by both, homebuyers and developers. Those from tier II and III cities are actively getting involved in purchasing new properties, with greater trust in the real estate sector than before.
This shift in investments from metros to smaller cities is due to the "Housing for all' initiative. Likewise, the encouragement given to developers with respect to affordable housing by lowering GST and others has proven to be a pacesetter for the real estate sector," highlighted Wadhwani.
This article was originally published by Shahram Warsi.