The Real Estate Market
Indian Real Estate Industry: Overview,
Advantage, Market Size, Growth, Investments.
In India, the sector of real estate in the market was known to be the second-
highest employment generator field that is after the agriculture sector which is
considered to be first. It was witnessed that the Indian real estate sector has the
rapid highest growth of progression in the current period also which raised the
current demand strategy for office space also in the residential spaces.
Advantages of investing in Real Estate
Attractive opportunities
As per the view of ICRA, the Indian real estate industry and the firms are
known to have huge growth > Rs. 4.2 trillion (US$ 51 billion) through this
market investment in infrastructure and real estate market trusts in 2022.
An investor like Blackstone is a private market investor, which has invested
their demand in the Indian real estate sector (worth Rs. 4.2 lakh crore (US$ 54
billion), is now seeking to invest a multiple Rs. 1.9 lakh crore (US$ 22 billion)
by 2030.
Robust Demand
According to Savills India, real estate demand for data centers is expected to
increase by 15-18 million sq. ft. by 2025. India was known to be in the top 10
price appreciating housing markets among the others globally.
Also, the demand for residential properties and land space has surged due to
increased urbanization and rising household income.
Increasing Investment
In the first half of the year 2022, India's total amount of registered investments
worth was US$ 3.1 billion in the market sector of real estate assets, a growth of
56% YoY.
In this field, Construction was considered to be the third-largest sector in terms
of FDI inflow activities in the market. FDI in the sector (including construction
development & activities) stood at US$ 58.65 billion between April 2001 to
December 2022.
Market Size
By the year 2040, it was expected in the field real estate market will grow to Rs.
68,000 crore (US$ 9.80 billion) from Rs. 13,000 crore (US$ 1.73billion) in
2022. The business of the Real estate sector in India was known to reach US$
1.4 trillion in market space by the year 2030, up from US$ 220 billion in 2022
and also contribute the amount of 15% to the country’s GDP by 2026. In this
field retail, hospitality, and commercial real estate are also growing rapidly
which provides the most needed infrastructure for India's growing necessity.
INVESTMENTS/DEVELOPMENTS
Indian real estate industry has proved and also witnessed high growth in the
current period with growth in demand for office areas & residential spaces as
well.
The major investments and developments in this market sector of real estate are
as follows:
Between November 2021 and April 2022, the investors of, private equity
investment inflows into the real estate sector in India steadily stood up by
US$ 3.8 billion.
Major sales of the homes in India across seven major cities surged to
116% YoY to reach ~70,100 units in the third quarter of 2021, from
31,210 units in the same period last year.
REA India-owned online real estate company Housing.com tied up with
online legal assistance start-ups LegalKart, Vidhikarya, and Vakil in 2021
to offer legal advice and assistance to homebuyers.
The top three cities—Mumbai (~41%), NCR-Delhi (~22%) and
Bengaluru (~20%)—attracted the total investments recorded in the first
quarter period of the year 2022.
GOVERNMENT INITIATIVES
Also in this view, the Government of India estimates respective states have
taken several initiatives to encourage growth in factors of development in the
market sector. The project was implemented like Smart City Project, with a plan to
Building 100 smart cities, is a great bulk opportunity for real estate companies in
India.