In a prosperous and ever-growing country like India, it is no surprise that all markets are booming. The rather recent growth in demand for residential and commercial space has helped stabilise the industry against headwinds like the pandemic.
Let's look at the industry's past, present and possible future that remains a healthy part of investors' portfolios: The Real Estate Sector of India, 2023.
Q1 of FY 2023 has brought about some positive developments in the Indian Real Estate sector:
In 2022, private equity (PE) investments in India's real estate sector reached US$ 3.4 billion.
During the first half of the 2022–23 FY, India's top seven primary residential markets witnessed the highest sales in the past decade.
Institutional investor inflows amounted to 37%.
A pledge of Rs. 79,000 crores to the PM Awas Yojana was announced in the Union Budget 2023–24, showing an increase of 66% compared to the previous budget.
Construction of commercial properties
Despite the risks associated with this sector, the general outlook seems positive. Investors, builders, the Government, and individuals seem to believe that the industry will continue to see an upward graph.
The continuous rise in GDP per capita, increasing disposable income, more institutional investor interest, growing urbanisation, and growing awareness about this sector's investment potential drive the realty market.
Here are some key points of importance to note about the future:
India ranks among the top 10 appreciating housing markets globally regarding price appreciation.
By 2023, it is projected that the stock of organised retail real estate will witness a significant growth of 28%, reaching approximately 82 million square feet.
Blackstone, a private market investor, has invested significantly in the Indian real estate sector, totalling Rs. 3.8 lakh crore (US$ 50 billion). The firm is now looking to invest an additional Rs. 1.7 lakh crore (US$ 22 billion) by 2030.
The Government has granted permission for 100% Foreign Direct Investment (FDI) in townships and settlements development projects.
The real estate sector in India is projected to expand significantly, reaching a market size of US$ 1 trillion by 2030, a substantial increase from its size of US$ 200 billion in 2021. Furthermore, the sector will contribute approximately 13% to the country's GDP by 2025.
It is estimated that there is currently a shortage of approximately 10 million housing units in urban areas. To accommodate the country's urban population growth, an additional 25 million units of affordable housing will be required by 2030.
This highlights the significant demand for housing and the expansion potential that the Indian Real Estate sector holds over the next 10 years.
Ride the real estate wave and secure a cosy home or the commercial space of your dreams with the help of IIFL Home Loans. Our main goal is to provide you with safe and affordable housing finance options so that you can confidently invest in your chosen property.
IIFL Home Loans' loan options with flexible repayment schedules and affordable interest rates make it a great option to finance your property desires. Online application and quick approval rates ensure you won't worry about delays.
Take a quick eligibility test and apply now for a home loan from IIFL Home Loans.
On average, the real estate sector has provided a return of around 11.6% over the past 10 years. (Source: Financial Express)
According to CRISIL, over the last 20 years, the realty sector has delivered annual returns of about 6% on residential and commercial property. (Source: Nobroker)
Banks and financial institutions offer home loans to buy properties.
To get a home loan, you can visit a bank or financial institution and consult the relevant officials about opting for a home loan. You can visit the official website of IIFL Home Loans to learn more about our affordable housing loans and other options. You can also apply online now!
Yes, several lenders in India offer loans with the specific purpose of the borrower buying commercial space. IIFL Home Loans offers various affordable and flexible loan options for your unique and individual needs.
Investing in real estate in India seems to be a good option, considering the positive outlook of organisations like ICRA and CRISIL and the vast potential the sector holds for the future.
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