Effects of Migration of people on Residential Real Estate

Indian real estate sector is shaping itself dynamically with a progressive approach to migration. Presently, the Indian real estate sector is one of the most recognized sectors which influence rapid development and growth. According to the India Brand Equity Foundation (IBEF), the Indian real estate sector is expected to reach a market size of US $1 trillion by 2030 from the US $120 billion in 2017 and it will contribute 13% of the country’s GDP by 2025.

With this increasing rapid rate of development, the demand for residential housing is also increasing rapidly. Some of the reasons to consider for this rapid growth is increasing income, urbanization and economic growth moreover residential housing has become an essential asset for migrating population. Growing population in India has an impactful contribution in increasing the growth and rate of residential real estates. Education is also an important factor which has enabled the rural population to draft its shift to urban locations and thus, has made an increasing contribution to the urban housing system. Shifting of youth for employment to the cities has resulted in a key situation that has made housing more important. The increasing rate of development and education has made the need for rapid residential real estate sector growth a necessity. There has been a rapid increase of housing requirements also, due to the current practice and trend in Indian rural sector to migrate from rural areas to urban areas for a better livelihood.

Moreover, citizens in growing economies like India face difficult situations like a prospective home buyer facing a cash crunch to buy their dream home or having a limited choice of homes to select from. To bridge such situations HomeCapital has taken an initiative to assist the first time home buyers in India. It has come up with the first Down Payment Assistance Program with an objective to solve the biggest hurdle towards homeownership i.e. down payment. This program offers up to half of the home down payment requirement with zero cost EMI loans. Apart from this assistance provided by HomeCapital, the government of India has also taken steps forward by the scheme PMAY - Pradhan Mantri Awas Yojana which facilitates a vision to provide housing for all. The honorable prime minister of India has made an envision to provide housing for all Indians by 2022 when India will complete its 75th year of Independence. Such initiatives have made an important impact on making the residential real estate sector more convenient for home buyers.

The main objective of such an initiative is to make affordable housing in co-operation with public and private sectors. On December 2018, the Delhi Development Authority Housing Scheme launched 20,987 fresh housing units. From which 488 units were three-bedroom apartments for the high-income group (HIG), 579 units for the middle-income group and 16,296 units for the low-income group (LIG) and 3,624 units will be reserved for the economically-weaker section. This scheme has a direct link scheme under PMAY. Other such schemes include Tamil Nadu Housing Board Scheme (TNHB), Maharashtra Housing and Area Development Authority (MHADA), NTR Urban Housing Scheme and etc. All such initiatives were undertaken by government and private bodies to make dream housing affordable in India.