After a lull of several months on account of downturn, Indian real estate sector is getting invigorated yet again and the veracity has enthused both the commoners and business enterprises cutting across industries. Hence, lots of novel speculations which have strong relations with the reality are coming to the fore. As per the recent assertion of a top HDFC official, India is in need of Rs 3.6-lakh crore of investment over the next five years in order to construct an additional 2.65-crore housing units for six crore citizens.
Renu Sud Karnad, HDFC, Joint Managing Director, was speaking at a recently held function in Mumbai and said, “Over the next five years, we need 26.5 million additional housing units, investment requirements of over Rs 3,60,000 crore and need to re-house 62 million persons who live in urban slums.” In accordance with her appraisal, real estate sector in the sphere of India is a major contributor to national growth, at 8.86 per cent of GDP, and it is likely that 8-10 real estate IPOs would finish off in the region of Rs 230-billion (Rs 23,000-crore) over the next one year.
What is more, as per her, the housing sector, if priced in the approved manner, is likely to draw massive demand in the period ahead and any form of saturation in the sector is unlikely in the foreseeable future. “Given the acute housing shortage, it is unlikely that there will be any saturation in the market for a long time to come,” Karnad said.
Stating categorically that action in the real estate sector is shifting from the metros to the smaller cities with certainty, Karnad called for better commitment to the housing sector from the market participants. “We have to seriously question ourselves about our commitment to housing. We are indeed faced with a series of great opportunities brilliantly disguised as impossible situations, but we should not give up,” she said.
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