Market size of Real Estate Sector
Real estate sector in India is expected to reach US$ 1 trillion by 2030. Rising international real estate development is expected to provide potential growth opportunity to the Indian market.
Market size of real estate in India (US$ billion)
Real estate sector in India is expected to reach US$ 1 trillion in market size by 2030, up from US$ 200 billion in 2021. India’s real estate market is estimated to increase at a CAGR of 19.5% during 2017- 2028. The market is forecast to reach US$ 650 billion, representing 13% of India’s GDP by 2025.
Increasing share of real estate in the GDP would be supported by increasing industrial activity, improving income level and urbanisation.
India has an overall 75-80% import dependency on medical devices, with export at Rs. 14,802 crore (US$ 2.1 billion) in 2019 and is expected to rise at CARG of 29.7% to reach Rs. 70,490 (US$ 10 billion) in 2025.
The Government launched 10 key policies for the real estate sector:
- Real Estate Regulatory Act (RERA)
- Benami Transactions Act
- Boost to affordable housing construction
- Interest subsidy to home buyers
- Change in arbitration norms
- Service tax exemption
- Dividend Distribution Tax (DDT) exemption
- Goods and Services Tax (GST)
- Demonetisation
- PR for foreign investors
Opportunities in various segments
- All
- Flex Space Segment
- Healthcare
- Service apartments
- Senior citizen housing
- Hotels
- Smaller office spaces
Flex Space Segment
India's flexible space stock is likely to expand by 10-15% YoY, from the current 36 million sq. ft., in the next three years, according to a report by CBRE.
Healthcare
The healthcare market is expected to reach US$ 372 billion by 2022.
India needs to add 2 million hospital beds to meet the global average of 2.6 for every 1,000 people.
Service Apartments
Growth in the number of tourists has resulted in demand for service apartments.
This demand is likely to grow and presents opportunity for the unorganised sector.
Senior citizen housing
Emergence of nuclear families and growing urbanisation have given rise to several townships that are developed to take care of the elderly.
The segment in India can reach US$ 7.7 billion in market size by 2030 according to a study by the Ministry of Commerce and Industry.
Hotels
FTAs in India is expected to reach 15.3 million by 2025, which is expected to lead to an increase in demand for hotels.
Spiritual tourism is one of the biggest untapped markets for domestic travel; nearly 60% of domestic tourism in India is religion-based.
Smaller office spaces
As work from home and office has become the new normal, many companies are now shifting to smaller workspaces.
This transition is now helping revive the real estate economy that has come to a standstill in the last six months due to COVID-19.
The Government has allowed 100% FDI for townships and settlements development projects.
Why We Choose
- The Indian economy has experienced robust growth in the past decade and is expected to be one of the fastest growing economies in the coming years
- India’s urban population is expected to reach 525 million by 2025, up from an estimated 463 million in 2020.
- Rising income and employment opportunities have led to more urbanisation and more affordability for real estate in cities.