This article has been written by Oishika Banerji of Amity Law School, Kolkata. This article provides a list of seven incredible statistics about the real estate sector in India that indicate its fast growth in today’s time.
It has been published by Rachit Garg.
Table of Contents
Introduction
We all know how well the real estate sector of India is blooming in current times. The industry reflects its growth in numbers and data and that is exactly why you are reading this article.
The article is going to present to you 7 incredible statistics concerning the Indian real estate sector that will not only grab your interest towards knowing more about the sector but also make you think about the blooming future of this sector.
Well, before going to the statistics, it is interesting enough to note that according to NITI Aayog, the Indian real estate market is predicted to reach $1 trillion in value by 2030 and represent 13% of the country’s GDP by 2025. Keeping the same in mind, let us proceed with the other mind-blowing statistics.
Capital investment in the real sector of India
- It is interesting to note that the capital investment in the real estate sector of India reached $7.8 billion in 2022 and 48% of the investment was made in land deals, while 25% was committed to mixed-use developments.
- To make the market more accessible to small and retail investors, the Securities and Exchange Board of Indiareduced the minimum application value for Real Estate Investment Trusts from Rs. 50,000 (US$ 685.28) to Rs. 10,000-15,000 (US$ 137.06 – US$ 205.59) in July 2021.
Generation of employment by the real estate sector of India
- After agriculture, the real estate industry is India’s second-largest employment generator. The real estate sector, which currently makes up around 10% of the country’s GDP, is anticipated to expand by roughly 30% over the following ten years.
- According to statistics, the surge in the young population and expanding urbanisation are to be held as reasons for the high demand for homes. The IT and retail industries will also increase demand for office space to meet the needs of the divergent population. Together, these elements will result in the development of jobs in the real estate sector. By the end of 2022, the industry has reportedly employed up to 70 million people.
- The government’s “Housing for All by 2022” initiative is a significant employer in the real estate sector. In fact, 1.12 crore dwellings will be built exclusively in urban areas under the Pradhan Mantri Awas Yojana (Urban) Scheme by 2022, which will generate almost 1.2 crore jobs.
Acceleration in housing sales
- India is one of the top 10 home markets in the world for price appreciation. In the top eight cities, housing sales increased by 50% and new supply by 101% in 2022.
- Up to the end of September 2022, there were more than 1.61 lakh flats sold in the top seven Indian real estate markets. The success seen in the first three quarters of 2022 will undoubtedly set a new record for housing sales, which had last peaked in 2014 at 165,791 flats.
- Asia’s second-largest residential colony, Kankarbagh in Patna, spans 900 acres. It has all the amenities of a mini-township, such as a sports complex, a number of dining options, a park, as well as numerous schools, hospitals, and shopping centres.
Choosing planet over property by going for greener cities and homes
- The Indian real estate market is expected to increase at a rate of over 75% Y-o-Y during the next three years. In the past ten years, green real estate assets in India’s six major cities, NCR, Mumbai, Pune, Hyderabad, Bengaluru, and Chennai, have increased by 31%.
- Green buildings can save up to 30% of energy and 50% of water, according to studies. Green buildings are resilient to climate change, use less water, use energy efficiently, save natural resources, produce less waste, and promote biodiversity. This is accomplished through sustainable design, construction, and operations.
- According to a Jones Lang LaSalle (JLL) report titled “Sustainable Real Estate: India’s reaction to a greener future,” 81% of respondents believe real estate can revolutionise efforts to advance sustainability. As the corporate landscape changes quickly, companies are trying to fit in with the low-carbon economic agenda by setting ambitious net-zero carbon goals.
- The Central Government has allocated 19,500 crores in the Union Budget 2022 to promote the production of solar modules under its flagship PLI (production-linked investment) scheme. Developers working on climate-adaptive and environmentally friendly developments are being rewarded by both government policy and investors’ attention.
Booming real estate market in Gurugram (Delhi-NCR) region
- Gurugram’s real estate sector has experienced extraordinary growth, with property sales increasing by more than three times between January and September 2022. The uptick was noticed because housing demand across pricing points has increased. In comparison to last year, Gurugram’s housing sales increased by about three times in 2022.
- Sales reached 24,482 units from January to September in 2022 due to increased demand for homes in all price ranges, including entry-level, middle-class, and luxury homes. After 2020, investors have been favouring plots over flats, causing NCR to experience the highest appreciation between 20 and 40% in comparison to other metro centres.
Rise in sales in the real estate sector by means of digital portals
- The National Association of Realtors (NAR) reported in 2016 that there had been a 253% increase in real estate property searches over the preceding four years.
- Last year (2022), India saw a startling 658 million new internet users. These numbers show that there is a significant digital presence in the nation and that people are becoming more and more dependent on it. Brokers often charge 1-2 percent in sales and rental commissions from both buyers and sellers. Broking fees have been substantially reduced as a result of the steady shift in consumer choice toward real estate portals.
Contribution of the Indian real estate sector to the developing economy
- Private equity investment inflows into India’s real estate market from January to September 2021 totalled US$3.3 billion. The residential real estate sector is thriving despite the pandemic. The COVID-19 pandemic has increased the demand for real estate in India’s Tier 1 cities because the pandemic has intensified people’s desire to own a home.
- In the top seven cities, 1,700 acres of land were transacted in the Indian real estate market in one year. $10.3 billion foreign investments were made in this industry between 2017 and 2021.
- The Indian real estate sector is expected to register a CAGR of 9% during the forecast period of 2023 to 2028.
- Looking ahead to 2023, the general Indian economy shows what can only be interpreted as encouraging indicators, including a predicted increase in job creation of 8–9% and a rebound from the current stock market fall. All of these factors would eventually enhance housing demand as more individuals entered the housing market, which is crucial for the health of the real estate industry.
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