Index : 1,677 | 1Yr : -21.2% | 1Mo : +4.42%
Category : Sectoral Trackers
Min Investment : 2,712
It is everyone's aspiration to own their own house. Although there is a growing middle class population that prefers to live in nuclear families, there is a chronic short supply of houses to the tune of 20 million in urban areas alone. The last decade witnessed a huge housing sector boom in many parts of the country and owing to the ever increasing demand, the residential segment is the most lucrative sub-segment of the real estate sector.
With the successful implementation of Smart Cities Mission and Housing for All programmes, the sector is going to be a major beneficiary in the future. As Tier 2 cities are likely to be better equipped with infrastructure and urban facilities, housing demand can become decentralized from the metros thereby encouraging development to spread out more uniformly across different cities and towns.
The housing sector is extremely sensitive to interest rates (Builders & Home buyers), raw material prices like steel, cement, paints and others. It also largely depends on the per capita income growth of the Indian population. With special focus on affordable housing, it gives these companies the opportunity to leverage their strong brand names that can accelerate existing growth.