A STUDY ON IVESTMENT BEHAVIOUR IN REAL ESTATE

Abstract

The construction and real estate industries have experienced tremendous growth in terms of employment and Gross Value Added (GVA) in recent years. Factors related to both supply and demand contributed to this growth. The factors driving demand include growing urbanization, the demographic dividend, the rise of the middle class and their rising ability to afford homes, the notable expansion of the services sector—particularly in the areas of banking, insurance, software, and communication—and the extraordinary expansion of organized retail and shopping centers. Increased foreign direct investment (FDI) combined with domestic investment, favorable bank and financial institution lending practices for residential and commercial loans, growth in Plan Outlay, Gross Domestic Savings, and Gross Domestic Capital Formation, a higher GDP share for the construction sector, increased funding for the Indira Awaas Yojana (IAY) and Pradhan Mantri Gram Sadak Yojana (PMGSY), increased investment in infrastructure, etc. are the supply factors. On the one hand, the construction industry is characterized by a growing degree of mechanization; on the other hand, traditional materials and inputs are being replaced. Therefore, technological advancements both create a need for skilled and technical workers while also displacing unskilled labor. l. There are several obstacles, limitations, and difficulties facing the real estate and construction industries related to financial, administrative, and procedural matters. Administrative and procedural issues, such as the need for an appropriate dispute resolution mechanism in the construction sector, the need for a simplification and transparency of contract procedures, and the need for a thorough review and modernization of municipal laws and procedures in light of recent developments in urban infrastructure, transportation, and pollution control, among other issues, need to be rationalized.