India may have to build a Chicago kind of city every year till 2030 to meet the requirements of the Indian population, said Hardeep Singh Puri, Minister of State (Independent Charge) for Housing and Urban Affairs.

“In a country of 1.25 billion people where nearly 30 per cent people live in urban areas, the real estate sector holds immense opportunities. However, between 2018 and 2030, we have to build Chicago every year in a manner which is green and resilient,”said Puri, adding that India may become a $10-trillion economy by 2030.

He was at a function jointly organised by the CII and real estate consulting firm CBRE, which launched a report on the reality sector in India. The report said Real Estate Investment Trust (REIT) acquisitions touched $ 10 billion, accounting for a share of 17 per cent of the overall investment volume in Asia in the first half of 2018.

Terming RERA as a remarkable legislation, Puri said it has changed the basic ground rules of the sector. Detailing the various initiatives of the government in the real estate sector, he further added that the present government is committed to alleviating the concerns of homebuyers.

The report further highlighted that the average ticket size of investments is expected to increase as corporates keen on monetising their land assets and smaller developers looking to retire debt bring attractive land deals to the market. Moreover, REITs will open a new investment avenue for investors by allowing them to invest in the property market with a minimum amount of ₹2 lakh.

“Through initiatives such as RERA, REITs, Ease of Doing Business, Housing for All, the industry has witnessed the much-needed transparency across the realty value chain, enabling a ripple effect on capital inflows,” said Anshuman Magazine, Chairman, India and South East Asia, CBRE.

Published on August 29, 2018