The real estate sector of India is a fascinating study, both for economists and investors. This dynamic and vibrant market is resilient and is one of the largest employment generators in the country.
With its vast landscape and diverse population, India offers a unique set of opportunities and challenges for investors and developers. In this blog, we will explore eight intriguing facts that shed light on the Indian real estate market.
Here are some facts about the real estate sector that you will find fascinating.
- Population and housing – India is now the most populous country in the world. With a population of 141.7 crores as of December 2022, India overtook China, which had been the world's largest country by population since the 1950s. With a growing population, it stands to reason that housing is one of the country's greatest challenges, and the real estate sector is growing in tandem to address this. Apart from selling the existing inventory, real estate developers have started to undertake new projects and housing development in many Tier !, II, and III cities across the country. The Indian real estate sector has experienced significant growth in recent years. According to industry reports, the market is estimated to reach a value of USD 1 trillion by 2030. This growth can be attributed to factors such as urbanization, rising income levels, and favorable government policies.
- A remarkable rebound – The COVID-19 pandemic brought a lull phase into the country's real estate sector. The rebound, however, has been phenomenal. In the third quarter of 2022, residential property prices in most of the country's major cities have risen by 1-2%. It is estimated that nearly a quarter of the housing demand in the country comes from major cities like Delhi and Mumbai.
- Economy and real estate – The real estate industry has always been a significant contributor to national development. According to a recent report, estimates suggest that by the year 2030, the sector is expected to reach a market size of about USD 1 trillion. This will account for nearly 20% of the national GDP.
- Affordable housing - India has one of the world's most significant government-backed affordable housing schemes. In the 2023-24 budget, FM Nirmala Sitharaman allocated about INR 79,000 crores for the Pradhan Mantri Awas Yojna. Budget homes accounted for nearly 28% of all residential property sales in 2022. While this was lower than in 2019, it is a substantial market, given the scale of housing in the country.
- Smart homes – India's ambitious drive to establish 100 smart cities has significantly boosted the real estate sector. In fact, the demand for smart homes in India is estimated to reach USD 4.43 billion very soon. Large developers are indeed leveraging the evolution of technology to build smart homes that are powered by IoT and interconnected devices.
- Tech-savvy industry – India is the largest market for online real estate. What this means is that nearly 70% of all property buyers use the internet to locate their next investment options. With the introduction of smart technology, AI, and big data, Blox has become a pioneer in consumer-centric online real estate. Blox connects home buyers directly with verified builders and offers end-to-end home-buying assistance at zero brokerage.
- Investment opportunities – With a variety of opportunities, India's real estate sector is one of the most lucrative for investors. One can buy into commercial, residential, and farm properties, and for those who do not wish to deal with physical property, Real Estate Investment Trusts or REITs are now a good investment option. The Indian real estate sector has witnessed a surge in foreign direct investment in recent years. The relaxation of FDI norms, along with the introduction of (REITs), has attracted significant international capital into the market. This influx of funds has provided a much-needed boost to the sector.
- Legal safeguards – India is the country with some of the most robust legal safeguards for real estate investors. Apart from various land revenue codes, laws like the Indian Stamp Act, 1899 and Registration Act of 1908, the Real Estate (Regulation and Development) Act of 2016 (RERA), Right to Fair Compensation and Transparency in Land Acquisition, Rehabilitation and Resettlement Act of 2013, Transfer of Property Act of 1882, and the Indian Contract Act of 1872 are some of the notable legislations protecting the rights of property owners and home buyers. Introduced to protect the interests of homebuyers and promote transparency in the sector. RERA has increased accountability among developers, ensuring timely completion of projects and preventing fraudulent practices. This regulatory framework has instilled confidence among buyers and investors.
Some other noteworthy factors include
The Indian government's Smart Cities Mission aims to develop 100 smart cities across the country. These cities are designed to offer sustainable infrastructure, efficient transportation, and a high quality of life. The development of smart cities presents immense opportunities for real estate developers and investors.
India is witnessing a growing focus on sustainable and eco-friendly construction practices. The Indian Green Building Council (IGBC) promotes the adoption of green building standards, encouraging developers to design and construct environmentally responsible projects. Green buildings not only reduce the environmental impact but also offer long-term cost savings to occupants.
The growth of housing and residential projects across the country has been keeping stride with the population and demand and this in itself is an amazing economic phenomena. The real estate boom in India is fuelled by the growing demand for residential property in the country’s metropolitan cities. Mumbai, in particular, is one of India’s largest real estate markets. The Brihanmumbai Municipal Corporation or the Municipal Corporation of Greater Mumbai has been expanding at an unprecedented rate with the suburbs being tapped by property developers in the city.
And if you too, are looking to buy a residential or commercial property in Mumbai or one of the upcoming suburbs, you can partner with Blox, India’s premier online real estate platform. The online real estate buying platform makes digital househunting easy and effortless. Connect with a Blox relationship manager for insights and market updates. Your relationship manager is an expert in Mumbai localities and suburbs and can help you find the right residential property with all the amenities and facilities you need. Blox will connect you directly with verified developers making the home-buying process smooth and easy by enabling you to buy the house in seven clicks.
