Real Estate Business in India: Overview & Future Scope

As an owner of a Real Estate business organization or Agent or broker, It is better to understand what is the status of real estate in India? And its overview, history, and Future Forecast.

As we discussed in the earlier post, real estate is divided into 4 sector types which are housing, hospitality, retail, and commercial. Still today, the real estate business is one of the most successful business sectors in India.

Corporate market growth is the main factor to impacts real estate business development. The demand for Corporate accommodations, High rise Constructions, and office spaces is the main driving force in pushing the real estate business.

As per statistics, the construction sector of real estate has high demand among the major competitive businesses in India.

Nonresident Indian (NRI) investments are the major resources for the development of Indian real estate.

If you consider major Metropolitan cities, Bangalore in the first place, consecutively Pune, Ahmedabad, Chennai, Goa, Hyderabad, Delhi, and Dehradun are the most favorable for real estate investment.

Table of Contents

What is the Scope of the real estate business in India?

Gradually, the Indian Real state has been growing tremendously due to the high demand for corporate office faces spaces, as well as residential spaces In 2019. The real estate sector has received around 43780 crore which is in terms of $6.26 billion investment.

The recently born real estate investment REITs platforms were launched by the By securities and exchange board of India (SEBI).

The main aim of the REITs platform is to encourage investors to invest in the Indian real estate business. This friendly investment project is expected to create 25 trillion rupees worth of inflows into the Indian real estate market in the future.

Compete with globalization, Indian real state stakeholders are willing to initiate Megaprojects that we can say is a great revolutionary step.

The interest of real estate professionals or agents and the growth in Engineering, Management, architecture, and FDI are also key factors to push the Indian real estate sector into continuous development.

Even in small cities, the growth of the real estate business has emerged as a full-time business towards major development in the Indian real estate sector. In the future itself, there will be a bright future for real estate agents and brokers, keeping it in mind, it is better to advise join the best real estate school and get a license.

Once you have the agent license There will be a number of chances to get jobs soon. You can become a successful real estate agent and Later you might have skeptical about how much an agent can earn money in an all-time career.

For that you just forget it, improve your skills, be patient, search for better opportunities, increase the relationship with the customers, and clients, and do hard work and generate leads, hopefully, one day you will become a successful real estate agent as India is going to be the hub of real estate business.

Indian real state market size

Indian real estate business is expected to reach 65000 crore rupees from RS 12000 crore rupees by 2040. From $1.72 billion to $9.30 billion the US will grow estimated investments in the future.

Indian economy to assess that the Indian real estate sector is expected to reach $1 trillion US by 2030. Similarly, it will contribute 13% of countries’ GDP by 2025.

Since, 2017 you can observe significant development in retail, commercial, hospitality, and real estate. Based on this, you can identify how much infrastructure needs for Indian commercial space requirements in the future. Furthermore, from 2017 to 2025, the growth is expected to be 19.5% according to CAGR.

Because, the quick eruption of ITEs, IT, consulting, and manufacturing sectors generated a huge requirement for office spaces. If you take the 8 major cities’ office leasing space calculations which is almost 60.6 million square feet in 2019 As well as commercial leasing space is reached 269 69.4 million square feet.

And also, coworking space is increased to 12 square feet by the end of 2019 per person. As well, warehousing space is expected to jump to 247 million square feet in 2020 which’s equal to an investment of 50000 cr rupees in the period of 2018 to 2020, and also grade A office space is expected to reach 700 million square feet by 2022.

If you calculate the housing sales in 2019 Which are crossed 2.61 lakh unit sales.

Indian real estate sector has received 43078 crores investment in 2019.

The retail segment received a private equity investment of 1 billion US dollars in 2019.

Institutional inventory investment received $712 US during March 2020.

From 2015 to 2019, foreign(PE) received 14 billion US dollars.

SEZ’s exports received 7.96 lakh crores of $113.0 billion US by 2020. which grew to 13.6% according to statistics of the department for the promotion of industry and internal trade policy DPIT.

The construction sector is got the IV rank in the volume of FDI inflow.

From 2000 to March 2020, the FDI share in the real estate sector reached $402.50 billion US.

The latest figures of some of the major development and Investments in the Indian real estate sectors are:

Some prominent organizations which are property consultants, Anorak, are ready to build 100 malls by 2022. The remaining 69 malls will be built in the 7 Metropolitan cities and the remaining 31 malls will be constructed in 2 and 3-tier cities.

The Indian government has taken initiative to set up SEZ s For the need of DLF and TCS organizations.

The foreign investor Blackstone has crossed the $12 billion US investment in the Indian real estate including reality firm Puravankara Limited ready to invest around Rs 850 crore over the next five years to implement the residential Constructions in Mumbai, Chennai, and Bangalore.

Blackstone world REITs firm and Emanssy group are ready to invest in Around 4750 cores in early 2019.

RMZ Corporation and Mitsui fudosan PVT Limited joined together in January 2020 to expand the real estate business in the housing sector.

Housing sales reached 6.1 lakh units across 7 major cities in 2019.

In 2018, Embassy office parks promised around $52 billion US through India’s first real estate investment trust listing that is REIT.

Government role in the Indian real estate state sector

The Government of India as well as state governments come together forward to the Indian real estate business. one of the best initiatives of the Indian Govt is the Smart City project aimed to build a hundred smart cities.

The Government of India also introduced an alternative investment fund AIF that is equal to 25000 crores to resume the 1600 stalled housing projects across the country.

The flagship Pradhan Mantri Awas Yojana PMAY scheme has been enacted to build 1.12 crore houses in urban areas for creating 1.20 crore employment.

The Government of India has brought the affordable housing fund against the National housing Bank with an initial Corpus of 10000 crore rupees to fulfill the shortfall of Financial Institution’s deficiencies and Banks to encourage micro-financing of the HFCs.

The Indian government has officially approved 423 SEZs by 2020 and ¾ of the SEZs are started already.

Conclusion

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