With the rate of urbanisation on an increase, thousands of people are moving to cities every day, which automatically brings in the need for good housing. With land becoming scarce, the shift to vertical cities is the way forward. It also means the need for better infrastructure like airports, metros etc, become important, which can help in improving connectivity. Thus the need to provide smooth, safe and convenient people flow solutions like elevators & escalators becomes mandatory. These changes definitely will support the growth of the industry. India has the world’s second largest Elevator & Escalator (E&E) market today, after China, with the current market size at 50,000 units p.a. This Industry in India is poised to grow at a CAGR rate of 7-8% in the next five years.
Demand of the Real Estate Sector to be included in Priority sector has long been pending. This Budget is giving a hope that it is being fulfilled. This will provide support, growth and a favorable ecosystem for the Real Estate Sector and for all its stakeholders. This year brings in a lot of confidence for the Real Estate sector and in turn is expected to elevate the growth of Elevator and Escalator Industry as well. There are a lot of expectations from this Budget.
Green Buildings should also receive Tax Exemptions so that the construction of the same can be incentivized. This will create awareness of the Energy Efficient Elevators. There would be a need for further reduction of carbon footprint and construction of intelligent buildings with smoother people flow. So it becomes essential to provide smart & eco efficient vertical mobility solutions to support in better energy and traffic management.
Larger share of Elevators demands arises from Residential Segment. Affordable Housing or “Housing for All” is currently in the Top priority list of this Government. Moreover, Investment on other Infrastructure Projects such as Smart City Mission, AMRUT and HRIDAY are further expected to boost the demands of Elevators and Escalators
There is a need for more clarity on REIT and this will open a lot more opportunities for the Realty Sector to get easy funding and ensure timely completion of projects. Relaxation of FDI, promoting single-window clearances for ease of doing business and GST-related benefits for the Real Estate Sector will foster positive changes and certainly help both Investors and Buyers. Together all this could be a game changer for the Real Estate Sector and will further improve transparency and investor confidence in the Real Estate market in the long run.
With a slew of Government Policies such as RERA, GST and REIT in the last few years, the Real Estate Sector needs ongoing support by the government to guide it towards a long lasting road of development!