Real estate facts you must be aware of

The real estate sector in India is growing. Thanks to emerging technologies and artificial intelligence that have revolutionized the way this sector functions. Let us find out a few facts that are related to this sector below.

NITI Aayog

According to NITI Aayog, by the year 2030, the Indian real estate market is anticipated to reach $1 trillion in value. It will constitute 13% of the gross domestic product of the country by 2025. Citing the positive outlook, let us head on to the other facts below.

1. Employment generation

   1. Just on close heels of agriculture, real estate occupies the second place as far as being an employment generator. Currently, this sector contributes 10% to the GDP. However, it is expected to surge by 30% in the next 10 years.

   2. The 'Housing for All by 2022' program of the government is a significant initiative. The Pradhan Mantri Awas Yojana (Urban) Scheme by 2022 is anticipated to generate as many as 1.2 crore jobs.

2. Capital Investment in real estate in India

   1. In 2022, the capital investment in real estate was $7.8 billion. While 48% of it was made in land deals, 25% was used in mixed-use developments.

   2. The Securities and Exchange Board of India reduced the value of the minimum application from INR 50,000 to INR10,000-15,000 for Real Estate Investment Trusts in July 2021.

3. Greener cities

   1. According to a report by Jones Lang LaSalle, 81% of participants in the report believe India can revolutionise to attain sustainability. Most of the corporate entities are making changes for low-carbon and setting zero-carbon goals.

   2. As much as INR 19,500 crores have been assigned by the Central Government in the Union Budget 2022 for the promotion of solar modules under the PLI or production-linked investment scheme.

4. Surge in real estate sales through digital portals

   1. In 2016, the NAR, or The National Association of Realtors reported that a 253% hike was observed in real estate searches over four years.

   2. Regarding real estate searches, in 2022, India witnessed approximately 658 million new internet users.

5. Contribution of real estate to India’s economy

   1. The inflow of private equity investment into the real estate market in India between January and September 2021 was a total of USD 3.3 billion.

   2. This sector is anticipated to record a CAGR of 9% between 2023 and 2028.

   3. Around 1700 acres of land was part of transaction deals in the real estate sector in India in the top 7 cities. As far as foreign investment is concerned, $10.3 billion was made between 2017 and 2021 in the real estate sector.

6. Surge in house sales

   1. When it comes to price appreciation, India is among the top 10 countries in real estate.

   2. In 2022 alone, the sale of houses in the top 8 cities increased by 50%. Not only that a new supply of 101% was noticed as well.

   3. As of September 2022, more than 1.61 lakh flats were sold in the top 7 cities.

In a nutshell, overall, the real estate market in India offers ample opportunities for growth to investors, homeowners, and developers. Regardless of whether it is a commercial or residential market, there is growing demand. Also, as an investor, you can derive benefits from the REITs that promise to offer good returns in Indian real estate.