Real Estate

Real estate is a crucial sector, playing a significant role in India’s infrastructural development landscape. With a current market size of $482 Bn and contributing 7.3% to the total economic output, the real estate sector, encompassing residential, commercial, retail and industrial properties, is one of the pillars for the development of the country with its strong linkages with allied industries like cement, steel and building materials. The rapid urban migration, with the anticipation of approximately 590 Mn people (39% of the population) living in urban areas by 2036, would surge the demand for affordable residential properties. The expected upcoming demand could lead to $906 Bn worth of new homes by 2034, creating avenues for investment in residential projects. India’s emergence as a global IT hub has particularly driven the demand for commercial real estate segments, including office spaces, shopping malls, etc., with the top 8 cities of India accounting for 900+ Mn sq. ft. of office stock and an upswing in demand for office spaces in Tier 2 and Tier 3 cities. The establishment of Special Economic Zones, Software Technology Parks (STP) and Export-Oriented Units has significantly supported commercial real estate in the country.

Flexible Foreign Direct Investment (FDI) policies and structured regulatory frameworks, such as the introduction of the Real Estate (Regulation and Development) Act (RERA) 2016, have enhanced the transparency and growth prospects in the sector.

The sector’s evolution, driven by technological advancement and an emphasis on sustainable practices, including the use of eco-friendly building materials for green buildings in real estate projects, creates avenues for the country’s long-term growth while catering to the economic progress and demand of the youth population. This shift in the dynamic real estate landscape signals the opportunity for growth and innovation in this sector, thereby enhancing living standards and strengthening the country’s market environment.

$906 Bn
Projected valuation of the residential market by 2034