While the government has brought in laws such as RERA, over 80 percent of consumers are of the view that there has not been much change in the property buying experience.
The Indian real estate sector is expected to contribute 13 percent to the country's gross domestic product (GDP) by 2025, according to the 'Indian Real Estate and Construction: Consolidating for growth' report by National Real Estate Development Council (NAREDCO) and Asia Pacific Real Estate Association (APREA).
In 2017, the realty sector contributed about 6-7 percent to India's GDP. The sector is expected to touch $1 trillion by 2030, becoming the third largest globally.
Apart from its contribution to India's GDP, the growth of this sector holds significance as it is the third largest employer, after agriculture and manufacturing, in the country and presently employs over 50 million people.
Even though the overall business sentiment in 2018 turned positive owing to the current government's focus on affordable housing, regulatory reforms, and infrastructure status to warehousing, there are challenges that continue to exist. Here are some of the major challenges that lie ahead:
> Proper implementation of laws
Proper implementation of the law in the real estate sector is one of the key challenges. Realty players have expressed concerns over long approval processes, unavailability of land records and a high cost of funding.
Keeping transparency in land ownership rights, maintaining land records, procuring goods and services at the right price are among other challenges facing the sector. It is estimated that on an average $700 million is being paid in bribes at land registrars across India each year, as per the report.
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