Real Estate is one of the most globally recognized sectors. Housing, Retail, Hospitality & Commercial are four sub-sectors of it. The growth of this sector can be seen by the growth in Corporate Environment & need for Office Spaces as well as Urban & Semi-Urban Accommodations.
This sector seems to attract more Non-Resident Indian (NRI) Investment, both in the Short term as well as the Long term. Most favoured property investment destination for NRI is Bengaluru followed by Ahmedabad, Pune, Chennai, Goa, Delhi & Dehradun.
Real Estate Market is expected to grow to Rs 65,000 Crore by 2040 from Rs 12,000 Crore in 2019. Retail, Hospitality & Commercial Real Estate is growing significantly, providing the much-needed infrastructure for India’s growing needs.
Growth in ITeS / IT, Consulting and Manufacturing Sectors are driving the requirements for Office Spaces. Office Leasing Space reached 60 MSF across eight major cities, registering a growth of 27 %. Office Sector Demand with Commercial Leasing activity reached 70 MSF in 2019.
Warehousing Space is expected to reach 250 MSF in 2020.
Across 7 Major cities, Housing Sales reached to 2.61 Lakhs Units.
Real Estate Sector in India has witnessed high growth in the recent times with a rise in demand for residential spaces as well as offices.
As per the data of Department for Promotion of Industry and Internal Trade Policy (DPIIT), Construction is the 4th Largest sector in terms of FDI Inflow.
Following are some of the major investments and developments in Real Estate Sector: –
The government of India along with the respective states governments has taken several initiatives to encourage developments in the sector.
The Smart City Project, with a plan to build 100 Smart Cities, is a prime opportunity for Real Estate Companies. Some of the major Government Initiatives are as below: –
Approval of Real Estate Investment Trust (REIT) platform has been given by the Securities and Exchange Board of India (SEBI), which will enable all kinds of investors to invest in the Indian Real Estate Market. This action will help to create an opportunity in India worth Rs 1.25 Trillion in the coming years.
Real Estate Developers, in meeting the growing need for managing multiple projects across cities, are also investing in centralised processes to source material and organise manpower and hiring qualified professionals in areas like project management, architecture and engineering. Due to growing flow of FDI, transparency is increasing in Indian Real Estate Sector.