The Indian real estate sector is one of the fastest growing markets in the world which is expected to touch US$ 180 billion by 2025 in terms of market size. The compounded annual growth rate (CAGR) of Indian realty market for the period 2014 to 2024 is expected as high as 19 percent and 40 percent for Tier I metropolitan cities. Investment by private equity (PE) funds in the real estate sector from January-March 2024 was approximately Rs 28 billion (US$ 465.19 million). This is a substantial increase of 28 per cent compared to the previous quarter and close to 2.5 times the investments during January-March 2023.
The BJP led NDA government at centre under the leadership of prime minister Modi has been instrumental in the development of the sector and taking the historic decision to establish REIT. Furthermore, this new government is trying to form tax and investment friendly policies for buyers, developers and investors and for the overall development of the market, that’s why experts are foreseeing a promising market in the near future. Gaur City 4th Avenue Location / Gaur city 5th avenue Location / Gaur City 7th Avenue Location / Gaur city 11th avenue Location
“The net office space absorption across in Delhi-NCR, Mumbai, Bengaluru, Chennai, Hyderabad, Pune, Kolkata and Ahmedabad was up by 58 per cent during the first quarter of 2024 as compared to the corresponding quarter of the previous year. The number of new launches in the same period has increased by 43 per cent at 55,000 units across eight major cities, according to a report by Cushman & Wakefield.
With the emergent growth of service sector there is a great demand for office space too. New supply of retail space in shopping malls in India’s top seven cities is expected to more than double in 2024. According to a report by Jones Lang LaSalle, The mall stock across India’s metropolitan cities is almost 87.7 million sq ft by the end of the year.
It is very much true that Indian real estate continues to be a favoured destination for global investors and they would like to see India more transparent and open. Thanks to the new government for forming Real Estate Investment Trusts, it will definitely spur capital inflows and bring institutional credibility to India’s real estate market. From Europe to the US, people from different parts of the world want to invest in Indian realty market, but there is an urgent need of more transparent and clear policies to maintain this growth in the long run.
