💠Market Size
With its consistent performance and rapid recovery, the real estate industry recovered buyer and investor confidence and accelerated growth momentum. According to Knight Frank's 'Real Estate Outlook 2022' research, India's real estate market is expected to increase at a respectable rate in 2022.
Residential segment - According to the Regrob analysis, new supply in the residential sector increased by 27% between January and September 2021, compared to the same period in 2020, while sales increased by 5%.
By 2040, the real estate industry is expected to reach Rs. 65,000 crore (US$ 9.30 billion), up from Rs. 12,000 crore (US$ 1.72 billion) in 2019. The Indian real estate industry is predicted to grow to a market size of US$ 1 trillion by 2030, from a current market size of US$ 200 billion in 2021, and to contribute 13 percent to the country's GDP by 2025.
A substantial amount of growth is also occurring in retail, hotel, and commercial real estate, which is providing much-needed infrastructure for India's expanding requirements.
Here we can see in the figure, the growing demand of Real Estate in India which is forecasted to reach $1000 billion industry.
According to ICRA forecasts, Indian companies are likely to raise more than Rs. 3.5 trillion (US$ 48 billion) via infrastructure and real estate investment trusts by 2022, compared to funds generated so far totaling US$ 29 billion (US$ 29 billion).
From July 2020 to December 2020, the office market in the top eight cities reported sales totaling 22.2 million square feet, while new completions totaled 17.2 million square feet over the same time. BSFI and Manufacturing sectors each accounted for 16 percent of total sectoral occupiers in the second half of 2020, while the Other Services and Co-working sectors accounted for 17 percent and 10 percent of total sectoral occupiers in the second half of 2020, according to the data. It is predicted that demand for data centers would expand by 15-18 million sq. ft. per year by 2025, according to Savills India's research.
The manufacturing sector will account for 24 percent of office space leasing in 2020, with 5.7 million square feet leased in total. Small and medium-sized enterprises (SMEs) and electronic component makers rented the most space between Pune, Chennai, and Delhi NCR, followed by the auto industry leasing in Chennai, Ahmedabad, and Pune, respectively.
The third-party logistics (3PL), e-commerce, and retail categories accounted for 34 percent, 26 percent, and 9 percent of total office space rentals, respectively, according to the report. When it comes to overall private equity investments in real estate in Q4 FY21, the office sector received a 71 percent share, followed by retail at 15 percent, and residential and warehouse at each of the remaining 7 percent.
According to JLL India, India's net office absorption reached 5.85 million sq. ft. in the third quarter of 2021, representing an increase of 8 percent year on year in major cities. This quarter's overall volumes were dominated by three cities: Delhi-NCR, Mumbai, and Pune, accounting for 62 percent of the total. The eight micro markets in India sold a total of 55,907 new dwelling units between July 2021 and September 2021, an increase from the previous year (59 percent YoY growth).
In the third quarter of 2021 (between July 2021 and September 2021), new housing supply totaled 65,211 units, representing a 228 percent year-on-year growth across the top eight cities when compared to the 19,865 units introduced in the third quarter of the previous year.
Commercial spending is expected to increase significantly in 2021-22. For example, the Chintels Group announced in October 2021 that it will invest Rs. 400 crore (US$ 53.47 million) on a 9.28 lakh square foot commercial building in Gurugram.
According to the Economic Times Housing Finance Summit, just three dwellings per 1,000 people are built annually, much below the required five per 1,000. Government estimates put the current housing shortage in urban areas at 10 million units. By 2030, an additional 25 million affordable housing units will be required to accommodate the country's expanding urban population.
In spite of the epidemic and the country-wide lockdown, the figure shows a huge rise in the housing industry price index within a year. Increased industrial activity, income growth, and urbanization would all contribute to raising real estate's percentage of the GDP. To support the industry, the government announced ten critical real estate policies:
Real Estate Regulatory Act (RERA)
Benami Transactions Act
Boost to affordable housing construction
Interest subsidy to home buyers
Changes to arbitration standards
Service tax exemption
Dividend Distribution Tax (DDT) exemption
Goods and Services Tax (GST)
Demonetization
Foreign Direct Investment (FDI)
These policies will hugely affect the growth and forecasted numbers In The Real Estate Industry.
Last updated