India's Real Estate Sector: Current Trends and Future Prospects
The Indian real estate market is poised for significant growth, projected to expand from 0.33
trillion in 2024 to 1.5 trillion by 2029, achieving a remarkable CAGR of 25%. However, the
sector faced severe challenges during the COVID-19 pandemic, particularly in metropolitan
areas where housing sales plummeted due to strict lockdown measures. Additionally, the
growth of home loan disbursements was sluggish, hindering sectoral recovery.
Despite these setbacks, the real estate market
remains pivotal to India's economy, ranking third
among 14 major sectors in terms of both direct and
indirect economic impact. It serves as the second-
largest employment generator after agriculture, with
expectations of increased investment from NRIs.
Preferred destinations for NRI investments include
Pune, Chennai, Goa, Delhi, and Ahmedabad.
According to industry report demand for urban
accommodations as household incomes have been
increased .Currently, there is a deficit of 5 to 10
million households, necessitating 25 million units of
affordable housing by 2030 to meet national growth
targets. The Real Estate sector had a blow from the
government policies like real estate regulatory authority (RERA), Real estate investment trust
(REITs), housing initiatives like PMAY (Pradhan mantriawasyojana ) and SWAMIH (Special
Window for Completion of Construction of Affordable and Mid-Income Housing Projects).
For instance the state of west Bengal targeted allocation of 45, 70,082 houses through rural
development programs. In the financial year 2023-2024 the number of houses completed in
urban area of India under PMAY (Pradhan mantri awas yojana) reached 1,58,37,128. As
reported by the Reserve bank of India housing
loans amounted to around INR 2 trillion (USD
24.44billion) almost reached pre-covid level.
This reflected renewed homebuyer sentiment, as
an increasing number of Indians have been
investing in buying residential property, which
continues till date.
The Indian real estate market is highly crumbled
with multiple players operating in the market.
The higher competition among the market
players is crashing the selling price and land
price also further leading to overstock In the
market. Further more the market is dominated by
a few Pan-India branded player and local
entities. This competitive market has contributed
to fluctuations in prices and certain segments in the market.
