Institutional investments in the real estate sector are a boon for real estate, according to Pankaj Bansal

New Delhi, December 30 (IANS): According to the report of the Department for the Promotion of Industry and Internal Trade Policy (DPIIT), the construction sector is third in terms of FDI inflows. The sector attracted $ 51.5 billion in FDI from April 2020 to June 2021. India’s real estate sector also attracted $ 5 billion in institutional investment in 2020 itself, equivalent to 93% of recorded transactions. previous year, or even to registered private equity. investments worth US $ 3,240 million in some 20 transactions in the fourth quarter of fiscal 2021.

Institutional investments in the real estate sector also rose 17% and private equity investments grew 24% year-on-year in the September quarter, according to real estate consultants JLL India and Savills India, respectively.

Blackstone, which is one of India’s largest private market investors, managing around $ 50 billion of market value in the real estate industry, plans to invest an additional $ 22 billion over the next 10 years.

The RBI’s stance on keeping the repo rate at 4% and the repo rate at 3.35% has been a boon to the industry.

The growth of the real estate sector is a strong signal of a rapid recovery in the Indian economy. The country’s second-largest employer is once again ready to support the infrastructure sector and create short and long-term employment opportunities.

Pankaj Bansal, Director of M3M India, India’s leading real estate developer and the largest developer of retail space in North India, is confident in the rapid recovery of the real estate sector after the Covid downturn, and is aggressive on entry into IDE in the sector.

“The retail segment has been on the investor radar as it offers excellent investment opportunities to a wider range of small and large investors. As a member of NCR, Gurugram appears to be the leader in the retail industry. M3M India is today the largest developer of retail space in North India delivering over 4 million square feet of retail space in one of Gurugram’s most promising growth areas . Overall, the company has delivered a whopping 20 million square feet of real estate space. The DPIIT report on FDI flows in the construction sector, and the interest of institutional investors in real estate is very encouraging. I think this will make the business more competitive, providing better value to buyers and investors, ”said Pankaj Bansal.

The real estate sector is also eagerly awaiting the next Union budget and expects some significant tax breaks to boost the sector and make it more affordable.

“We are now looking forward to the Union budget and we are waiting for a dynamic policy favorable not only for the retail trade, but also for the housing sector. As the whole sector aims to contribute at least 13% to India’s GDP by 2025 and reach a market size of USD 1 trillion, I’m sure the government should also look to come up with some concessions and essential relaxations in the 2022 Union budget, ”said Pankaj Bansal.

Real estate ranks third among the 14 major sectors in terms of direct and indirect or induced impact on all sectors of the economy.

Pankaj Bansal added: “The market is constantly expanding. There are huge growth opportunities for small and medium retail investors that will make the market more accessible to a wider audience. Even the cohabitation market in the top 30 cities, mostly metros, is expected to nearly double – to around $ 14 billion from the current size of $ 6.70 billion. The increase in the real estate sector, which is the second sector in terms of job creation, after agriculture, will create more jobs. “

According to the recent Savills India report, real estate demand for data centers is also increasing – from 15 to 18 million square feet by 2025.

In addition, in the third quarter of fiscal 2021, the housing sector stood at 62,800 units, representing a 113% year-over-year increase in the top seven cities, compared to 29,520 units in the third quarter of 2020. In the seven cities, Mumbai had 33% of total sales and NCR 16%. According to JLL Report, in the January to March 2021 quarter, NOIDA accounted for 55% of net absorption, followed by Gurugram at 38%. Delhi-NCR has also witnessed a surge in demand for office space.

“The Indian government’s ambitious 100 smart cities project will not only be a great opportunity for the real estate industry, it will also pave the way for many world-class developments in key emerging markets, by capable real estate developers exploring new possibilities. “smart” and new age innovations to bring new ways of living habitats, ”explains Pankaj Bansal.

The central government has given a boost to the sector by deciding to build 20 million affordable housing units in urban areas of the country by the end of fiscal year 2023. This is being done under the Pradhan Mantri Awas Yojana (PMAY) program. by PM Narendra Modi. housing and urban affairs.