When we are going to implement FDI in real estate, the real estate sector is bound to grow and benefit more than what we all have think of Real estates in India is one of the most vibrant and active sectors round the world. As we have evolved from just a country of 4 metro cities to seven metros and numerous mini metros city, the rise can be subjected to be noticed. Though most of the population still lives in the back country yet more and more people are moving towards these metro and mini metro cities in order to attain a better lifestyle and opportunities. The metro cities offer what is the aspiration of most people including better jobs, livable life, life standards and almost everything. This has resulted in a movement of over 10 million people to move to cities annually!
Now that we are having such massive movements, there is a dire need of our cities to get equipped with self sufficient housing plans, local transportation at ease, hygiene and cleanliness standards, lower pollution and more. Studies have also proved that there is also an urgent need of basic needs like homes to accommodate the shifting people, which mean infusion of large funds, bigger investments into real estates. With development, there has been a rise in issues as well in real estate markets. This cannot be combated with usual step but the recent step that clears the way of FDI into the sector has cleared a way for growth sectors. Now let us understand how this step will help to create waves of growth in the market.
The first solution it will provide is the cash influx to the cash starved sector that actually needs a dire and fresh impetus in housing needs. The real estate sectors now days are facing hard times managing the cash flows. The lending is difficult and timelines have taken a hit which has hindered the growth to much extent. And for India, FDI in retail is not just about bringing home the much needed Dollar and revive but also that we need a larger focus on attaining the global expertise. We lack on operational strengths and need to acquire technical and financial reputations which need helps from Global support systems. All around improvement from end to end upgradation, competitive skills and result driven processes.
If we have these two things under our hood, the growth is just round the corner. A direct investment of global companies, their standards and practices can do wonders to our economy, development scale and improvement parameters. The more builders adapt to FDI and joint venture development with foreign players, the higher are the chances of this sector opening up and increase to manifolds. There is no denying to the fact that those traditional builders, who are large in size and have huge lands in the market, will also get equal benefits. After all, it’s about growth and not money!