A recent report by RBSA Advisors stated that real estate investment is facing an upward trend and will reach $1000 billion by 2030, with a total contribution of 13% of India’s GDP by 2025. This will be an outstanding leap of 15% CAGR from $60 billion in 2010. The projections are that India will deliver 82 million square feet by 2023 instead of the actual delivery of 40 million square feet in 2021.
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Indian Real Estate Market
The real estate market of India currently resides at the top of the employment building generating the second-highest employment. Regarding real estate investment, the government’s initiatives keep rolling with short-term and long-term investments from Non-Resident Indians (NRIs). Bengaluru attracts most of India’s real estate investment, followed by Pune, Goa, Ahmedabad, Chennai, Dehradun and Gurgaon.
Despite a little rise in house loan interest rates and prices, the real estate market has thrived due to optimistic buyer enthusiasm. There is an indication of considerable demand for real estate in Delhi-NCR across all price categories. The overall connectivity improvement of road and metro connectivity has helped real estate in the NCR. The development of Jewar Airport has also served as a significant stimulus for the development of Noida. These factors have encouraged developers to launch new projects further from the city and have made a deep impact leading to a reduction in the time buyers must spend commuting. Additionally, because these projects are new, they benefit from superior construction and greatly improved facilities.
These new initiatives have launched the real estate market into a spin that thrives and yields returns. According to Square Yards, the real estate price in Delhi for apartments range between ₹2,646 and ₹13,466 per sq. ft. However, the builder’s floor can go up to ₹18,935 per sq. ft. The real estate price in Noida for apartments has an average price range of ₹2,422 and ₹6,035 per sq. ft. Positive feelings are also present in the commercial area.
Concrete Facts
Certain facts promise the growth of the Indian real estate market. These concrete facts are:
- Large retailers are expanding and looking for new spaces.
- New initiatives are being put into action.
- The pandemic-related delays to projects have inched near completion.
- The office and retail segments of commercial real estate are experiencing tremendous growth.
- According to a study, demand for shops with offices has witnessed significant growth, and commercial property prices are rising favourably.
- The rise in luxury apartments, plots, villas, and separate floors is an intriguing facet of the post-pandemic real estate market.
- Sociodemographic and economic growth factors like urbanisation, income growth and an increase in nuclear households are a few factors driving the Indian retail sector.
see also – Is Consolidation the Future of the Indian Real Estate Market?
The Estimates
According to estimates, commercial facilities with both office and retail space typically have between 6% and 9% returns. In the time frame between January and June of this year, 25 million square feet were leased, an increase of 107% from the previous year. Bengaluru and NCR are at the top of the list, with 7.7 million square feet and 4.1 million square feet, respectively, of these transactions. The analysis predicts that the Indian retail industry will increase to between $1.1 trillion and $1.3 trillion by 2025, which is a positive forecast. Its value in 2019–20 was $0.7 trillion, representing a Compounded Annual Growth Rate (CAGR) of 9–11%. The organised retail real estate market is predicted to increase by 28% to 82 million square feet by 2023.
