Introduction
One of the most well-known industries in the world is real estate. Housing, retail, hospitality, and business are the four subsectors. The expansion of this industry is aided by the expansion of the corporate environment, which has increased demand for office space as well as urban and semi-urban lodging.
After agriculture, the real estate sector creates the second-highest number of jobs in India. This sector is also likely to attract greater non-resident Indian (NRI) investment, both in the short and long term. The most popular property investment destination for NRIs is projected to be Bengaluru, followed by Ahmedabad, Pune, Chennai, Goa, Delhi, and Dehradun.
Size of the Real Estate Market
From Rs.12,000 crore (US$ 1.72 billion) in 2019, the real estate industry would rise to Rs.65,000 crore (US$ 9.30 billion) by 2040. India's real estate market is predicted to grow to US$ 1 trillion by 2030, up from US$ 120 billion in 2017, and contribute 13% of the country's GDP by 2025.
From July to December 2020, the office market in the top eight cities saw 22.2 million square feet of sales, while new completions totaled 17.2 million square feet.
In the second half of 2020, the Information Technology (IT/ITeS) sector dominated with a 41 percent share, followed by the BSFI and Manufacturing sectors with 16 percent each, and Other Services and Co-working sectors with 17 percent and 10%, respectively.
According to the Economic Times Housing Finance Summit, about three houses are created per 1,000 people each year, compared to the required five houses per 1,000 inhabitants. The present housing deficit in cities is projected to exceed ten million units. By 2030, an extra 25 million units of affordable housing will be needed to accommodate the country's urban population growth.
Investments/Developments in Real Estate Market
The following are some of the notable investments and developments in the real estate sector:
● According to Ana rock, home sales climbed by 29% and new launches jumped by 51% in Q4 FY21 compared to Q4 FY20 in seven cities.
● Homebuyers took advantage of low mortgage rates and developer incentives in Q4 FY21, reviving demand for residential real estate. In the first quarter of this year, residential sales in the top seven cities recovered to levels above 90% of those seen in 2020.
● Blackstone is one of India's largest private market investors, with a market capitalization of Rs.3,694 crore (US$ 50 billion) in the real estate sector. In the next ten years, the corporation plans to invest more than Rs.1,625 crore (US$ 22 billion).
● Working remotely is likely to become more popular in 2021, and demand for cheap residences with ticket sizes under Rs.40-50 lakh is expected to surge in Tier 2 and 3 cities, resulting in price increases in certain areas.
● Godrej Properties said in March 2021 that in Q4 of 2021, it would unveil ten new real estate projects.
● By acquiring equity shares from HDFC Venture Trustee Company in March 2021, Godrej Properties boosted its equity holding in Godrej Realty from 51 percent to 100 percent.