As India gears up for the 75th Independence Day, trace the journey of Indian real Estate in all these years and how the Government empowered the realty sector since its inception till date.
After ousting Britishers from our motherland, the next big challenge was to get the poor peasants released from the implications set by the Zamindars. The people whose power and authority increase with time resulting in ownership property, in short wealth. This dis balance in the society was decided to be erased when post-independence our country India, embraced socialistic ethics of equality in social, economic and political verticals.
Right To Property and Constitution of India
As per the *Constitution of India, its 44th Amendment of 1978 erased the right to property from the list of fundamental rights. A new provision, Article 300-A, was brought in place to the constitution, which provided that “no person shall be deprived of his property save by authority of law“.
Acts Introduced in Relation with Indian Real Estate Post Independence
- Zamindari Abolishment Act was passed in 1951, when Land reforms were taking place in the nearby countries as well.
- Land Ceiling Act was passed in 1976 and the purpose to introduce this Act was bringing about an equitable distribution of land in urban agglomerations to subserve the common good.
Regime between 1980 -1990
Prior to 1980, our country didn’t witness much real time Indian real estate activities. That was the time when our fellow countrymen were working to the best of their abilities to bring stability in life. The exploitation of poor by the rich was still going and independent stakeholders/investors were required to make the realty industry stand on its feet. The then Central Government understood this requirement that resulted in the establishment of Housing & Urban Development Company in 1970, followed by City & Industrial Development Corporation in 1971, and National Housing Bank in 1988.
Regime between 1990 – 2000
In this period, the Central Government was inclined towards Economic liberalization. This started exactly in 1991 that opened doorways for MNCs to come in India with brought foreign investors and stakeholders as well to make investments in the Indian market. With this Indian Real Estate witnessed skyscraper buildings and aesthetically sculpted commercial hubs which not only changed the working culture but also changed the living standards of people. It led to change in people’s mindset and financial condition as well. Also, this development was seen as the opportunity to run away from poverty and insufficient amenities in small towns. People started moving to bigger cities in search of employment as securing a job in MNC was like securing family’s future. India witnessed transition from Joint and Undivided families to Nuclear families. This surged the demand for more housing unit and the Indian real estate started to evolve then.
Regime during 2000 – Till Today
Then time came when technology took over all industries and brought a noticeable change in every Indian’s life. It gave a boost to requirement of more residential units as people understood the importance of living a good quality life. India got first-even Mall in early 2000s. The Mall named “Spencer Plaza” was opened in Chennai. Also, various IT companies established themselves in several metropolitan cities.
Post 2006, the Central Government of India gave a nod for modernization of Airports like Delhi and Mumbai. This led to increase in the Indian real estate development across airports.
After 2014, when PM Narendra Modi came into the power, the two major reforms were introduced. One is REIT i.e. (Real Estate Investment Trusts) which created a safe environment for property investors to make property investment without worrying about having a restricted budget. Also, REIT opens doors for small size investments in commercial real estate of the country. It welcomes a plethora of Grade-A office properties in Indian cities and attracts investors to invest in prime commercial real estate.
Indian Real Estate Since 2017
May 1st, 2017 saw one of the biggest takes in the recent times of the real estate sector- the government passed the Real Estate (Regulation & Development) Act or RERA to boost the development of cities that eventually made an advantage to the home buyers as well.
*Constitution of India is said to be lengthiest Constitution in the world as it holds elaborated details and descriptions of all the powers given to the executive, legislature and judiciary.
