Real Estate Planning in India

Real estate planning in India has been introduced as a separate chapter by the Planning Commission of India in the tenth five year plan (2002-2007).

The chapter on India Real Estate planning covers shopping malls, residential townships, multiplexes, entertainment centers, hotels, factories, and industrial building as activity related to real estate. The real estate sector is one of the fastest growing sectors of India and provides many employment opportunities as well. More than 250 industries indirectly or directly depend on the Indian real estate industry.

The Indian real estate sector contributes 6.5% to the country's GDP. This shows the importance of the real estate sector in the Indian economy. This is the reason that the government of India is making more efforts in order to organize this industry which is at present largely unorganized. In order to increase planning of real estate in India, the National Building Organization has been set up. This is an agency which is under the Housing and Poverty Alleviation Ministry of India.

According to the Indian Planning Commission, around 61.8 million people lived in urban slums in 2001. This means that there is need millions of houses with basic civic facilities. In the Indian real estate planning, a National Housing and Habitat Policy- 2006 had been formulated, which aimed at providing shelter for all slum-dwellers by 2010. Under this policy, the government plans to provide 2 million dwelling houses per year. All these plans have given a major boost to real estate planning in India.

The planning of real estate in India has increased in recent years for it have been found that the majority of people are evading taxes related to real estate. The government of India plans to make the tax regime more rationalized in this sector, so that the evasion of taxes becomes less.

Real estate planning in India has begun only recently. The government needs to make diligent efforts to ensure that this sector grows and realizes it full potential in the near future.

Last updated on 4/28/2011