Construction of Bungalow. Real Estate and Infrastructure Industry
Bungalow is a one-story house, cottage or cabin. Bungalows are generally small in terms of square footage, but it is not uncommon to see very large bungalows. Bungalows were originally designed to provide affordable, modern housing for the working class.
Bungalows are most often one-story houses, although they often also include an additional half story, usually with a sloped roof. There are various types of bungalows, including raised bungalows that have basements partially above ground to let in additional sunlight. There are also some that branch away from the original definition by adding additional levels such as lofts and half levels. Common features of the bungalow include a dormer window and a veranda.
The real estate sector is one of the most globally recognized sectors. Real estate sector comprises four sub sectors – housing, retail, hospitality, and commercial. The growth of this sector is well complemented by the growth of the corporate environment and the demand for office space as well as urban and semi-urban accommodations. The construction industry ranks third among the 14 major sectors in terms of direct, indirect and induced effects in all sectors of the economy.
Real estate sector in India is expected to reach a market size of US$ 1 trillion by 2030 from US$ 120 billion in 2017 and contribute 13 per cent of the country’s GDP by 2025. Retail, hospitality and commercial real estate are also growing significantly, providing the much-needed infrastructure for India’s growing needs.
The construction of commercial houses, residential housing, and business spaces, such as hotels, restaurants, theaters, and industrial buildings, namely factories and government buildings, are all covered by the real estate sector. Real estate also involves activities such as the purchase, sale, and development of land. Thus the real estate activities encompass both construction and housing sectors.
The unprecedented growth in the Indian industrial real estate sector is fuelled by two important forces. First, the fast expansion of the Indian industrial sector has created a large demand for manufacturing and office buildings. Second, the liberalization policies of the government of India have simplified the investment process by reducing the need for permissions and licenses for starting any large construction project.
Growth rate of Real Estate Industry across India from FY 2010 to FY 2020
The construction industry is next in line after agriculture in India which makes for about 11% of India as GDP. Thereby making a significant contribution to India’s economy and provides employment. This is because of the linkages that the sector has with other sectors of the economy. About 250 ancillary economical areas such as cement, steel, brick, timber and building material are dependent on the construction industry. A unit increase in expenditure in the construction sector has a multiplier effect with a capacity to generate income as high as five times.
The major segments in the construction industry consist of real estate construction which includes residential and commercial construction; infrastructure development which includes roads, railways, power, etc; and industrial upliftment that encompasses oil and gas refineries, pipelines, textiles, etc.
The Indian construction industry is predicted to grow at an average rate of 6.4% between 2018 and 2023. Residential construction is expected to remain the largest market over the forecast period, accounting for 30.1% of the industry’s total value in 2023. India’s construction industry is expected to continue to expand over the forecast period (2019–2023), driven by the government’s efforts to develop the country’s infrastructure and improve housing sector.
The global real estate market is expected to generate a revenue of USD 4,263.7 billion by 2025. Factors such as the increasing demand for housing real estate space, rapid urbanization through migration in search for better amenities. Rapid economic development in the developing regions and countries like India, China, and many African countries has enhanced income levels and helped in the real estate market.
The market is driven by rapid urbanization through migration to find better amenities thus increasing the demand for urban home spaces. Real estate spaces for commercial, retail, industrial and healthcare infrastructure are in high demand with increasing urbanization.