The real estate market in India has witnessed numerous ups and downs in the past few decades, undoubtedly. However, one thing is very commendable about this sector. This is its ability to not just get back to its feet but fare much better than before too. The year 2017 was pretty eventful. Thanks to the country’s major decision to demonetise Indian currency. This undeniably, affected several sectors, including real estate. Yet, the industry soon picked up momentum thereon. Most importantly, it today ranks fourth in terms of FDI contribution to the country’s GDP. Now again we need to think of the real estate future in India after corona.
Real Estate Future in India
According to a recent survey, we may expect something exciting in the Indian real estate market. Yes, it can touch a whopping USD 1 trillion by the year 2030! Market analysts and experts are of the opinion that it’s all thanks to the consistent efforts that the country has invested in improving its real estate sector’s global ranking since 2014. This has further encouraged investors by instilling a sense of confidence in them. This happened despite all the ups and downs that the market has witnessed over the years.
If we believe the 2030 prediction, India may well move ahead in its current rank. It can become the third-largest in the world in terms of real estate growth. The survey by KPMG, in association with Naredco and APREA, further estimates that the real estate market in India can witness an increasing growth. It can touch nearly USD 650 million by the year 2025 and cross the estimated figure of USD 850 billion in just 3 years by 2028!
Boom in the Indian Real Estate Market
KPMG feels that the consistent boom in the Indian real estate market is propelled by growing availability of affordable housing for the Indian society as well as a major contribution by private equity investments. The latter displayed improved by at least 15% year-on-year in the period January-March last year, touching USD 3 billion. We may expect private investment to further increase to up to USD 100 billion by 2026.
Moreover, a majority of these investments are composed of FDIs. For instance, almost 44% of the total investments in the real estate sector in 2018 came primarily from the US, Canada, and Singapore. More than 90% of the FDI goes into preferred commercial projects in major Indian cities such as Mumbai, Pune, Bengaluru, and Hyderabad.
Despite continual growth in FDI, the Indian real estate market still has potentially low buyers. One of the major reasons for this could be the perpetually high property prices. However, if India can control its property rates to a decently affordable level, there seems to be no stopping it to maintain its international positioning in the real estate market.
Summing Up
India is a land of opportunities. And so its real estate sector, which continues to offer substantial employment to the country’s population. In view of the current positive trends, we can safely say that the future of real estate in India may move only in one direction, i.e., upward.
Please “Like” & “Share” to enlighten others.
Looking for more information on real estate? Keep exploring.
Be the first to comment