Top 10 Biggest Real Estate Investment Challenges In India


Since 1990 the Indian real estate sector has become one of the fast-growing markets all over the globe. It has been successfully attracting both domestic as well as foreign real estate investment. The real estate sector is an inherited aspect of the construction field which has tremendously been increasing all over the country.

The real estate investment challenges in India

Well, the aim of real estate is to boost up the housing segments all over India. The sources like SmartOwner’s website can serve as the best platform to check out the real estate plans.

Slow Urban Development

Compared with India’s per-capita urban infrastructure expenditures the growth of urban population has been extremely high. As the urban population started increasing, it has become much more challenging for the real estates to grow quickly.

Shortage of land

It is too good to be true that there is always an equal demand for both residential and commercial spaces in SmartOwner’s website all over India. But now there is a shortage of land which makes it difficult to balance supply and demand rule that has tremendously increased the cost of the project.

Highly complicated approvals

Due to more complicated and lengthy approval processes, it has become quite difficult to compensate overall expenditures. The result has been directly influenced by the project cost which has been increased to 20 to 30%.

Limitations for the standard development

There are some standard development limitations imposed on the real estate investments, which makes it more complicated as well as challenging. Some of such limitations include density standards, parking lot, basic ground area and many more.

Inadequate policy framework

Both the central as well as the state ministries do not have a proper understanding which affected the real estate Investments. Adding to this the legal procedures, rules and regulations applicable to the real estates are unmanageable making it more complicated.

Critical tax policy

Even the tax applicable to real estate sector has increased the overall investment cost. The taxation includes VAT, stamp duty and others with directly or indirectly influence the overall cost of the residential and commercial sector.

Excess cost and submission delay

As the technology has been improving making lives easier and it has become expensive to utilize the modern equipment. And the overall construction due date is being delayed making real estate investments more complicated.

Development standards

Nevertheless, development, as well as environmental standards, have been equalized that eventually lead to the sub-optimal usage of the property. Depending on these standards the per unit cost has also been changing from day to day.

Inadequate financial sources

The limitation of foreign financing sources and primitive equity and debt market equally play an essential role in making real estate investments in India to be more challenging.

Unsold inventory


As the real estate became immobile, which also impacted the untold inventory started rising up. This, in turn, made it more challenging for the investors to make the right decision.

The challenges are quite common in any field whatsoever India is on the edge overcoming the real estate challenges. Most of the companies are accepting the upcoming challenges standing strong and making profits from it. Finally, the real estate sector of India definitely has immense growth rate.

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