India’s real estate sector has developed on a strong economic base and is playing an important role in the development of the country. India’s real estate sector is moving towards new heights of development. With 18 percent contribution to this sector, it is the largest employer after agriculture. Currently, its market value is $ 493 billion, which contributes 7.3 percent of India’s GDP. The major reasons for its growth include increasing urbanization, rising incomes and increasing demand for residential, commercial and logistics space.
Role of Banking and Financial Services
Banking and financial services play a vital role in the growth of this sector. They provide the necessary financing through home loans and construction finance. Insurance products also mitigate risks during the lifetime of the property.
Residential Real Estate Trends
Post-COVID-19, the residential real estate market has improved. The share of low-priced housing has declined to 26 per cent, while the share of valuable properties has increased to 43 per cent. Buyers’ preferences are based on location, size, and price.
Commercial Real Estate Development
India’s commercial real estate is witnessing a growing demand for offices. 53.7 million sq ft of office space has been transacted in the first nine months of 2024, up 27 per cent over the previous year.
Investment Trends
Real estate investments are witnessing a boom, with real estate investment trusts (REITs) and private equity capitalising on various opportunities. Technologies such as artificial intelligence, virtual reality and the Internet of Things are transforming real estate, driving growth in the sector and improving customer experience.
