THE FUTURE OF INDIAN REAL ESTATE BY 2040

A small look at the real estate industry:

The word “real” is derived from the Latin root rex, which means “royal,” since the kings, in the past, used to own all land in their kingdoms. It is said that real estate is one of the most globally acknowledged sectors in the world. If we know real estate in terms of business, it means the game of producing, buying, and selling property. According to all the sectors of the economy, the construction industry ranks third among the 14 major sectors in terms of direct, indirect, and induced effects.

In India, after the agriculture sector, the real estate sector is to be considered the second-highest employment generator, and it is also expected that this sector will sustain more non-resident Indian (NRI) investment for the short term and the long term. Bengaluru is the top city that is expected to be the most recommended property investment destination for NRIs, followed by Ahmedabad, Pune, Chennai, Goa, Delhi, and Dehradun. 

The market size of the real estate industry by 2040:

The real estate market will grow to Rs. 65,000 crores (US$ 9.30 billion) from Rs. 12,000 crores (US$ 1.72 billion) in 2019 by 2040. In India, this sector is expected to reach US$ 1 trillion in market size by 2030, up from US$ 200 billion in 2021, and it will contribute 13% to the country’s GDP (gross domestic product) by 2025. India’s growing infrastructure is much needed to grow, as retail, hospitality, and commercial real estate are also growing significantly. Within a year, India’s real estate sector saw over 1,700 acres of land deals in the top 7 cities. In the commercial real estate sector, foreign investment was at US$ 10.3 billion from 2017-21. 

According to the report of ICRA (Investment Information and Credit Rating Agency of India Limited), Indian firms are expected to boost >Rs. 3.5 trillion (US$ 48 billion) through infrastructure and real estate investment trusts in 2022. According to the Savills India report, the real estate demand for data centers is expected to increase by 15-18 MSF in the year 2025, whereas in 2021, around 40 MSF were delivered in India. Now, It is expected that the country will have a 40% market share within 2-3 years, and India is looking to deliver 46 MSF in 2022. In India, a total of 55,907 new housing units were sold in the 8 micro markets between July 2021-September 2021, which means there is 59% growth year over year, whereas, in the third quarter of July-September 2021, new housing supply stood at 65,211 units, and increased by 228% YoY across the top 8 cities when compared with 19,865 units launched in the third quarter of 2020. When it comes to commercial space in Gurugram, it is expected to record increasing investments in 2021-22. 

According to the Economic Times Housing Finance Summit, about 3 houses are built per 1,000 people per year, compared with the required construction rate of 5 houses per 1,000 people. The current shortage of housing in urban areas is estimated to be 10 million units. An additional 25 million units of affordable housing are required by 2030 to meet the growth in the country’s urban population.

Debates on the future of real estate investment regionally and internationally


Abu Dhabi Cityscape
April 22, 2010

Due to the support from a government-led infrastructure program, the real estate market is now acquiring stability again. But, according to senior executives of three of the top Abu Dhabi master developers with multi-billion dollar projects on their books; it will still take some time to be fully established.

At the Cityscape Abu Dhabi conference, in a finance panel debate it has been noticed that the highest investment potential is in the mid-range residential rental and the retail property sectors.

The CEO of Aldar Properties, John Bullough who is behind the projects as Al Raha Gardens, Yas Island and the Ferrari World theme park; the Executive Director of Mubadala Real Estate and Hospitality, John Thomas, associated with projects like Arzanah, Sowwah Island and the Mina Zayed Waterfront; and the Chief Operating Officer of Sorouh Real Estate, Gurjit Singh, whose works include Shams Abu Dhabi, Lulu Island and Al Ghadeer on the Abu Dhabi-Dubai border were some of the panel members.

Till 21 April 2010, Wednesday, many more inclusive and open debates will be held at the conference alongside Cityscape Abu Dhabi, at the Abu Dhabi National Exhibition Centre. The debate will be on the topic “the future of real estate investment regionally and internationally”.