Real estate is one the most growing & profitable fields in India. It is expected that the market size of the real estate sector will be 1 trillion dollars by 2030. It will be contributing 13% to the country’s GDP by 2025. The major reason includes the increase in nuclear families, rapid urbanization, etc.
There are 14 major sectors that directly or indirectly affect the in all sectors of the economy, the construction sector ranks third among those sectors. Real estate is the second-highest employment generator, the first being the agriculture sector. Bangalore is the most favoured investment destination for the NRIs (Non-resident Indians), it is also predicted that the NRI investment will increase more, both in the short term and the long term.
The real estate market has a market size of Rs. 12000 crores in 2019, it will grow to 65000 crores by 2040. It will contribute 13% to the country’s GDP by 2025. The four sub-sectors of the real estate market, Housing, Retail, Hospitality, And Commercial, are also growing significantly.
As per ICRA (Investment Information and Credit Rating Agency), Indian firms are expected to raise >Rs. 3.5 trillion (US$ 48billion) through real estate investment. Rs. 2.1 trillion (US$ 29 billion) worth of funds were raised to date.
86,139 housing units were launched across the top eight Indian cities in the second half of the year 2020 (July 2020 to December 2020). Home sales from October 2020 to December 2020 in eight major cities of India were doubled to 61,593 units, compared to 33,403 units in the previous quarter. This signifies the healthy recovery from the strict lockdown imposed in the second half of 2020 during the spread of COVID-19 in India.
According to the Economic Times Housing Finance Summit, the required construction rate is five houses per 1000 population per year, whereas about 3 houses are built per 1000 population per year. The housing shortage of urban areas is estimated to be around 10 million units. By the end of 2030, an additional 25 million affordable units are required to meet the growth in the country’s urban population.
The Indian real estate sector has witnessed high growth in recent times with the rise of both residential and office spaces. Some of the major investments in this sector are as follows:
The SEBI (Securities and Exchange Boards of India) has approved the REIT (Real Estate Investment Trust), which will create an opportunity worth Rs. 1.25 trillion (Rs. 125000 Crores) in the Indian market.
It is expected that the residential real estate industry will grow in upcoming times, with the Indian government aiming for 20 million affordable housing in urban areas of Indian cities, under the ambitious Pradhan Mantri Awas Yojana (PMAY) scheme of the Union Ministry of Housing and Urban Affairs.
Click to access the Real Estate Industry Archived Report.
References: Media Reports, Press releases, Knight Frank India, VCCEdge, JLL Research, CREDAI-JL, Union Budget 2021-22
Note: Conversion rate used in October 2021, Rs. 1 = US$ 0.013
Disclaimer: This information has been collected through secondary research and RoodLand India is not responsible for any legal obligation regarding the same.