Page 62 - Kolte Patil AR 2019-20
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Optimism for the real estate market in India

             Increasing urbanisation          Rise in nuclear families         Increase in incomes
            The rate of urbanisation in India   Family nuclearisation is projected to   The nominal per-capita net national
            was pegged at 34.03% in 2018 and   add 6-7 million households every year,   income during FY20 was estimated
            is projected to increase to 39% by   which in turn, could drive the demand   at C1,35,050, a rise of 6.8% compared
            2030. This growth is expected to drive   for homes.               to C1,26,406 during FY19. Per capita
            demand for housing and commercial                                 income is projected to increase by
            spaces.                                                           5% annually, increasing domestic

             Demographic dividend             Changing lifestyle               Rising investments
            India’s population among the youngest   The Indian population is exposed to   It is projected that India could receive
            in the world. By 2022, the median age   global lifestyle trends, including a   an investment of USD 6.5 billion in the
            in India will be 28 years, compared to   desire in them to live better. This has   real estate sector in 2020, 5% higher
            37 in China and United States.   resulted in an increase in investments   than 2019. This rise in investment has
                                             in larger homes and home décor.   been driven by the growing demand
                                                                              for commercial office space from the IT

             Smart City Mission               Pradhan Mantri Awas Yojana       Rising UHWIs
            The Union Government is all set to roll   The Government of India (GoI)   The number of ultra-high-net-worth
            out Smart City Mission 2.0. Through   launched the Housing for All under the   individuals (UHNWIs) in India is
            this, mission the government aims   Pradhan Mantri Awas Yojana (PMAY) in   estimated to grow by 73% in the next
            to expand the Smart City Mission to   June, 2015. During the period 2014-20,   five years, almost doubling the count
            all 4,000 cities in the country. This   30 Lakh houses were built under PMAY   to 10,354 from 5,986 in 2019. Indian
            will drive the demand for better   (U) and 1.41 Crore houses under PMAY   UHNWIs invested 20% of their wealth
            infrastructure.                  (Gramin). The government approved   into properties.
                                             over 6.5 Lakh houses under PMAY
                                             (urban) in FY20, increasing houses
                                             sanctioned under the scheme to over 1

             Housing shortage                 Improved borrower affordability
            According to Ministry of Housing and   Home buyers receive tax incentives on
            Urban Affair, there was an affordable   home loans for principal and interest
            housing shortfall of approximately 10   payment of home loans. Tax incentives
            million houses.                  on home loans for principal and interest
                                             repayment and the subsidy under CLSS
                                             for economically weaker sections, low
                                             income groups and middle income
                                             groups is expected to drive the demand
                                             for housing units.

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