The real estate sector is one of the most recognised sectors. In India, real estate sector is the second largest sector after agriculture sector. Real estate investment in India is considered a highly valuable asset and is expected to grow by 25-30% by the next decade. It usually comprises of commercial, hospitality, housing and retail as sub sectors. Out of these the growth of Commercial sector is well complimented with the growth of the corporate environment. It is expected that this sector will encourage not only the Indian citizens but also the Non-resident Indians (NRI) as short term and long term investors. As the cost of property in metropolitan has raised many folds in the past decade which usually attracts the NRI customers with their huge flush on money, the sub urbs are usually the ones which the national citizens choose because of it distance from the noisy metropolitans.
Indian real estate market size is expected to reach $ 190 billion by the year 2020, out of which the housing sector alone contributes to 5-6% of the country’s GDP. The market size for the years 2008-2020 is expected to increase by 11.2% at compound Annual Growth Rate (CAGR). The private equity sector has also seen an enormous growth of 26% nearly Rs40,000 crore in 2016.
IT, Retail, E commerce sectors have a high demand for office space and inventory space which is expected to increase as everything goes digital. India has been ranked 4th by the World investment Report in developing Asia for FDI. Many big whale investors are investing into the Indian real estate to mark some profits in the years to come, like South Korea’s Mirae Asset Group is planning to invest $ 500 million into the sector for commercial properties. Private equity firm ASK Property Investment Advisors and Emerald Haven are expected to focus on markets in Bengaluru and Chennai.
The government is also taking several initiatives to encourage development into this sector. There is Smart City project which aims to build 100 smart cities across the country making an opportunity for the real estate companies. SEBI has also given approval to allow all kinds of investors to invest I the Indian Real Estate market, creating an opportunity worth Rs 1.2 trillion.
As most people are moving from rural and semi-urban areas to urban areas, the real estate sector is in no mood to stop soon. With some good initiatives taken by the government it will surely reach to some new heights. The Indian market is seen as a very good growth opportunity by the investors from India as well as abroad.