With increasing demand and a resilient market, real estate in India is not just surviving; it’s thriving, setting the stage for a prosperous tomorrow.” – Jagmohan Garg
India is witnessing a remarkable phase of growth, with its economy expanding rapidly and various sectors flourishing, particularly real estate. As urbanization accelerates and the middle class continues to grow, the demand for housing, commercial spaces, and infrastructure is surging, making real estate a cornerstone of this economic transformation.
This sector not only plays a vital role in generating employment but also significantly contributes to the nation’s GDP, reflecting its importance in driving overall economic progress. The sector is expected to contribute around 15% to the GDP by 2030. With increasing investments and a shift towards sustainable practices, the outlook for Indian real estate remains incredibly positive, promising to reshape cities and enhance living standards across the country. Let’s gain insights from Jagmohan Garg, a Delhi-based real estate tycoon and owner of Mera Baba Group, on his perspective regarding this dynamic market.
According to a report by PropTiger.com, home sales in India’s eight major markets soared by 33% in 2023, reaching a total of 410,791 units sold, compared to 308,942 units in 2022. This surge marks the highest level of residential sales since 2013, indicating robust demand across all major cities.
Furthermore, KPMG’s report highlights that the market size of Indian real estate is currently valued at approximately USD 265.18 billion, having grown by about 32% since 2021. With luxury home sales experiencing a staggering increase of 75% in 2023 and new housing unit launches rising by 20% to a total of 517,071 units, the outlook for the sector remains incredibly positive. As the economy continues to expand and urbanization accelerates, these trends underscore the pivotal role of real estate in India’s growth story.
Jagmohan Garg states, “The real estate sector in India has experienced a remarkable resurgence over the past few years, with all indicators pointing towards sustained and steady growth. This upward trajectory is not just a fleeting trend; it signifies that real estate is at the core of India’s development, driving economic progress and urban transformation. After all, who wouldn’t want to invest in a market where the only thing rising faster than property prices is the enthusiasm for homeownership? With every new launch and record-breaking sale, it’s clear that the future is not just bright—it’s positively dazzling!”
The resurgence in the Indian real estate sector is driven by several key factors that collectively enhance its growth trajectory. One of the primary drivers is favorable government policies, including initiatives like the implementation of the Real Estate (Regulation and Development) Act (RERA), which have increased transparency and encouraged investment in the market. Additionally, infrastructure development plays a crucial role, with expansions in transportation networks, such as metro rail systems and improved road connectivity, making various regions more accessible and attractive for real estate investment.
Another significant factor is the growing investor confidence stemming from economic stability and the rise of high-net-worth individuals (HNWIs), which has led to a substantial increase in demand for luxury housing.
Moreover, the commercial real estate sector is experiencing robust growth due to the expansion of IT and service sectors, with cities like Bengaluru and Hyderabad witnessing significant office space absorption.
Jagmohan Garg Believes, “The best part of this growth is that it has extended its reach to tier 2 and tier 3 cities, which have experienced unprecedented real estate expansion. It seems that while everyone was busy chasing the glitter of metropolitan areas, these smaller cities decided to roll up their sleeves and join the party! With improved infrastructure, rising job opportunities, and a newfound charm, they’re proving that good things come in smaller packages and the real estate sector is one of the biggest reasons behind this change!”
Changing demographics and lifestyle aspirations are influencing market dynamics, as younger generations prioritize modern amenities and integrated living spaces that combine residential, commercial, and recreational facilities.
Looking at the future, real estate in India is poised for transformative growth, characterized by the increasing integration of technology and artificial intelligence into its operations. Jagmohan Garg opines “As the sector adapts to the demands of a rapidly urbanizing population, we can expect to see advancements such as AI-driven analytics for market predictions, virtual reality property tours, and blockchain technology for secure transactions becoming commonplace. These innovations will not only streamline processes but also enhance customer experiences, making property transactions more efficient and transparent.”
With government initiatives like Housing for All and Smart Cities Mission further driving development, the Indian real estate market is set to flourish in a way that embraces inclusivity and technological advancement. As we look ahead, the landscape promises to be dynamic, offering exciting opportunities for both investors and consumers alike, ultimately making real estate not just a sector of investment but a cornerstone of modern living in India.
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