Things You Need to Know About the Real Estate Market in India

21 Aug, 2021

Real estate is one of the most important sectors of any economy. In a country like India, it is one of the primary drivers of economic growth. The demand is enormous, and so are the actual investments made in this sector. Investors play a critical role in creating demand as well as supply in this sector. Multiple sub-sectors operate under the real estate industry. Some of them include housing projects, commercial projects, and various others such as hotels, resorts, and more.

There are several things that you should know about the real estate market in India. This post covers some of the major things everyone should be aware of in the Real Estate Market in India. Let's get started!

#1 Real Estate is the Second Highest Employment Generator in India

After agriculture, real estate is the second highest employment generating sector in India. Since there is a huge demand for real estate, the industry usually takes up a huge chunk of resources and employs hundreds and thousands of people. It is one of the major job creators in India.

The real estate industry also has a large number of indirect employments. People, who build houses and commercial buildings need to be fed, clothed and should have adequate shelter as well. You will find plenty of people working in hotels and restaurants near construction sites. All this gives rise to indirect employment opportunities.

Both in the urban and rural areas, the real estate industry play a crucial role in offering employment for many people. (Source)

#2 Indian Real Estate Market Attracted $5 Billion Investment in 2020

The Indian real estate market is booming each year. It is attracting huge investments from foreign countries as well. Foreign investors are more interested in investing in real estate projects in India than in any other country. In the year 2020, the market fetched more than $5 billion in investments from foreign entities.

One of the biggest reasons for this is that the sector offers amazing transparency and is a very safe investment venture. This number is equivalent to 93% of all the transactions recorded in the year 2019. (Source)

#3 The Real Estate Sector is all set to be an Rs.65, 000 Crore Market

The real estate sector in India is growing at a very rapid pace. It is expected to become even more profitable in the coming years. In 2019, the market reached an all-time high and touched Rs. 12000 Crore. By the year 2040, India's real estate sector will reach a whopping Rs.65,000 Crore. It will help the regional and local economies.

Going forward, the property development sector is expected to become an even bigger player in generating employment opportunities for Indians. It will provide a good number of job opportunities to people from various walks of life. More than that, it will create an ample amount of livelihoods for people living in rural areas as well. (Source)

#4 Real Estate Sector in India Creates Demand for 270 Other Industries

In India, the real estate sector plays a vital role in creating demand. It, directly and indirectly, boosts the demand for 270 other industries. That includes the need for raw materials, construction equipment, machinery, housing units, electronics, and electrical, etc.

Not only is it facilitating demands for other industries, but it also offers employment opportunities for thousands and thousands of people. There is absolutely no doubt about how crucial the real estate industry is to India. That is why you will find an abundance of opportunities within it.

#5 Post the Second Wave of COVID-19 in India, the Market is on a Rise

Since the year 2019, real estate in India has been experiencing a major boom. After issues like the IL&FS crisis hit it, a tremendous rebound has happened in the industry.

The government of India has taken a step towards reviving the real estate industry by taking this bailout package, called COVID-19. This will help developers and builders to get out of the huge debt they were in. Once post COVID-19, the government is planning to get down to business and build houses for the people who are employed in urban sectors. This is going to be a big step towards helping more people get access to affordable housing and a better standard of living overall. (Source)

#6 RERA has Transformed the Real Estate Sector in India

The RERA act introduced in 2016 has actually brought many changes to the Indian real estate industry.

The launch of the Real Estate Regulatory Authority (RERA) Act in 2016 and its subsequent implementation have made the sector much cleaner and resulted in more transparency. This act has not only attracted investment in the sector but has also helped foreign entities. They have more faith in investing in the Indian real estate industry than they ever had before.

After the introduction of the RERA Act, the market situation improved drastically, and there was a drastic rise in both new projects as well as commercial properties. There is no doubt that this change is all thanks to the RERA Act. (Source)

#7 Affordable Housing is the New Normal

The new 'norm' that is growing in the real estate industry and slowly becoming a trend across different parts of India is that people are looking for affordable housing units. The middle and upper-class Indians are now trying to get apartments at lower prices than they were paying before. It has created an immense demand for this kind of housing.

In an economy like India, where most of the population is below the middle class and working-class people, affordable housing is a big focus. Affordable houses can create employment opportunities for many more individuals in India. (Source)

Bottom Line

The Indian real estate market is booming, and it will continue to boom in the coming years as well. It is important for you to know about this market if you want to do business in India. Opportunities in the Indian real estate market are something that simply cannot be ignored. Not just because they are plentiful but also because there is a great growth potential. You can choose to dive in and start working in the industry or start your own venture. The opportunities are truly endless.