A study predicts that the real estate sector will grow by 15% and reach $1,000 billion by 2030

Posted on: September 18, 2022
Star EstateReal Estate Growth

According to Advisors, the real estate sector in India would grow at a CAGR of 15%, from $60 billion in 2010 to $1,000 billion by 2030, representing 13% of the country's GDP by 2025. Organised retail real estate is expected to increase by 28% to 82 million square feet by 2023. The Indian real estate industry is showing notable indications of recovery as the economy continues to recover from the pandemic, according to "The Outlook of the Real Estate Sector in India."

According to an expert, "the real estate business has been thriving on strong buyer sentiments despite the modest increase in prices and a slight jump in home loan interest rates."

The poll indicates that Delhi-NCR has a considerable demand for real estate in all price ranges. A director of a real estate firm claims that the general increase in connectivity—both road and metro—has helped real estate in the NCR. "A significant motivator has been the development of Jewar Airport. These have made it possible for developers to publicise new projects further from the city, and for the buyers, it has greatly shortened their commute times. Additionally, because these projects have just begun, they offer advantages such as superior construction and vastly upgraded facilities, the man added.

In the commercial segment, attitudes are also favourable. Major retailers are expanding and looking for new spaces. New initiatives are being introduced. Project delays brought on by the pandemic are nearing their conclusion. Commercial real estate's office and retail segments are solid. The study found a considerable increase in demand for stores with offices and a favourable rise in commercial property prices.

VP of Sales & Marketing of a firm stated that it had been calculated that commercial assets that include both offices and retail areas often generate returns between six and nine per cent.

25 million square feet were leased between January and June of this year, according to a Knight Frank analysis, up 107% from the same period last year. Bengaluru and NCR have grabbed the lead with purchases of 7.7 million square feet and 4.1 million square feet, respectively.

The increasing number of luxury apartments, plots, villas, and separate floors in the post-pandemic real estate market is an intriguing development.

The Indian retail sector is projected to rise to between $1.1 trillion and $1.3 trillion by 2025, according to the analysis, which is a positive forecast. In 2019–20, it was worth $0.7 trillion, corresponding to a Compounded Annual Growth Rate (CAGR) of 9–11%.

The socio-demographic and economic growth factors, including urbanisation, income growth, and an increase in nuclear households, are driving the Indian retail sector.

Organised retail real estate is expected to increase by 28% to 82 million square feet by 2023.