Several reports and market studies are pointing to the same conclusion – the Indian real estate sector is on its way to cross the one trillion dollar mark by the end of the year 2030. It will push the Indian real estate sector to the third place in terms of global ranks. The market surveys also predicted that the real estate sector in India will be touching the eight hundred and fifty million dollars mark and six hundred and fifty million dollars mark by the end of the years 2028 and 2025 respectively.
What one can take away from these recent market studies is that India is on the fast track of improving its global rankings, not only as a promising investment destination but also as an asset for the world real estate industry. The country has worked on improving its infrastructure and legal norms from the beginning of the year 2014. With continuous support from both the state level as well as national level governments, India has been successful in instilling confidence back in the minds of both its domestic as well as international real estate investors.
With that information in mind, if you are interested in knowing about what is the total worth of the world real estate sector, you can take a look at SmartOwner`s recent blog post.
Changing preferences of the market are adding to its growth
India is a developing nation and one of the youngest nations in the world when one takes a look at the average age of the Indian population. The contemporary adults in India are shedding the traditional norms when it comes to housing facilities, commercial properties, and offices. Both the working class as well as entrepreneurs in India are looking forward to co-working spaces and affordable housing facilities as they believe in spending their hard earned money on better things like:
- Enhancing the productivity of their business venture by keeping overhead costs like owning an office space to the bare minimum
- Enhancing the professional skills so that they can better their chances of getting a raise or a promotion at the firm they work on and the likes
On top of that, the Indian GDP rate is estimated to rise up to seventy percent or more by the end of the year 2025 which will open new employment opportunities in the country. If the figures are correct, then it is estimated that more than 60 million people will be able to get their hands on a well-paid job or opportunities to start their own venture. With income in hand, there will be a huge demand for both commercials as well as residential projects in India.
The emergence of private equity investments is a major contributor to its growth
Last year, the Indian real estate sector saw a surge in private equity investments from both domestic as well as foreign investors. The amount summed up to around three billion US dollars which are estimated to surpass the one hundred billion dollar mark by the end of the year 2026. As a direct result, the real estate market in both Tier – 1 and Tier- 2 cities in India will be benefited the most.
The sudden surge in private equity investments is the result of recently proposed initiatives and several regulatory reforms by the Indian government that paved the way for the Indian real estate sector to present itself as a strong asset in the global real estate industry. If this growth rate, in a very short span of time, Indian real estate sector will witness success rates as it has never seen before.