Real estate is one of the most profitable and globally recognized sectors in the world. India is the second largest populous country after China, and it is expected to overtake it by 2030. India has exhibited a historic economic transition and pushed its GDP to a great extent. The Indian Real estate is vast and unique and it makes distinct in the global scenario. Besides, the primary players like developers, buyers, sellers, real estate agents, landlords, and tenants, the sector also supports more than 200 ancillary industries like steel, cement, timber, brick, and so on.
Real estate sector is the 2nd highest employment generator, besides, the primary players like developers, buyers, sellers, real estate agents, landlords, and tenants. The sector also supports more than two hundred ancillary industries like steel, cement, timber, brick, and more. It is expected that this sector will incur more non-resident Indian (NRI) investment, both in the short term and the long term. With startups growing prominently in India, Real estate sector is not far left behind where a lot of B2B and B2C startups have started working alongside the real-estate sector.
Your wisest investment starts with buying a land, and ends with constructing grand, spacious and magnificent Mansion which fill your life with delight without unsettling the ecological balance of nature
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India’s Current Real Estate Market Scenario
In the first quarter of 2023 (January-March), net office absorption in the top six cities stood at 8.3 million sq. ft. In FY23, India’s residential property market witnessed with the value of home sales reaching an all-time high of Rs. 3.47 lakh crore ($42 billion), marking a robust 48% year-on-year increase. The volume of sales also exhibited a strong growth trajectory, with a 36% rise to 379,095 units sold.
The Indian real estate market saw over 1,700 acres of land deals in top eight cities in the first nine months of FY22. By 2040, the real estate market will grow to Rs. 65,000 crore (US$ 9.30 billion) from Rs. 12,000 crore (US$ 1.72 billion) in 2019. India’s real estate sector is expected to expand to US$ 5.8 trillion by 2047, contributing 15.5% to the GDP from an existing share of 7.3%. According to the data of Economic Times Housing Finance Summit, about three houses are built per 1,000 people per year compared with the required construction rate of five houses per 1,000 populations.
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As per the Knight Frank Report, Bengaluru is ranked as the second-best market in APAC cities with 5% increase YoY. Also it is 3rd wealthiest city and most well-liked cities. And, Mumbai is standing at the fourth place with substantial 6.5% growth in prime residential prices.
Delhi-NCR exhibited an increase of 52% in new launches against Q2 2022 and added around 8,460 units in Q2 2023. Chennai is called ‘Detroit of India’ for its rapid development in real estate and infrastructure. It witnessed 71% increase over Q2 2022 and added around 5,040 units in Q2 2023. Nizam City Hyderabad experienced substantial 10.7% quarter-on-quarter growth in demand in the residential sector. With 21% share Hyderabad ranked second in net office absorption in 2023. Kolkata has witnessed an increase of 22% over Q2 2022 and added around 2,460 units in Q2 2023.
In a nutshell, Indian real estate industry is one of the fastest-growing in the world, with a wide range of players, from small-scale developers to real estate Giants. Staying aligned with the market trends, government policies; diligent location analysis investors can extract lucrative opportunities. But it can be said with assurance that, by incorporating the strategic use of technology and thoughtful government policies, Indian real estate will see a staggering growth in forthcoming days.
After observing the current scenario, Niranjan Hiranandani, Co-Founder & Managing Director of Hiranandani Group, wisely said, “The best time to invest in real estate was 20 years ago. The second-best time is now.”
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