The continuing growth of Indian Economy will also require a highly matured and developed real estate sector, both in the residential and the commercial segment. Real estate Sector is the second largest employer in the country with linkages to 250 other sectors. The quantum of capital investment that Indian Real estate sector attracts forms a major portion of overall investments. According to an estimate , the size of real estate sector in India is likely to touch USD 1 Trillion by 2030 and about 15% of overall Indian economy. Affordable housing sector is continues to be in demand and more than 25 million units in urban areas shall be required to cater to this demand in 5-6 years period. Commercial real estate projects including the office spaces,retail,data centres , warehousing are also attracting considerable interest across India. The Capital in Indian Real Estate is getting more diversified to sectors such as Residential, Commercial, Logistics, Alternatives.
Presently, there are 1,22,553 real estate projects registered under RERA across India. “RERA has been a transformational development. It is unbelievable that one of the largest sectors in the economy didn’t have a regulator for nearly 70 years,” the minister of urban development has quoted.
The establishment of Real Estate Investment Trusts (REITs) has also helped in attracting investments into the real estate sector. The REITs have been around the corner for last few years, however its popularity as a medium of investment is has remained limited. The government has to yet develop the policies, that can help in popularising the REITs as an investment among Indian citizens.
Foreign investors also continue to exhibit confidence in India’s real estate sector, infusing USD 3.6 Billion during 2023, amounting 67% of the total inflows. The United States and Canada are the top sources of capital in Indian real estate and there is growing interest from Asia-Pacific (APAC) countries Singapore, Hong Kong, South Korea, and Japan.
The big picture about real estate sector in India remains positive but bubble creation in certain pockets here and there can not be ruled out.
