Prospects of Real Estate Industry
Some facts of Real Estate Industry
The real estate market is one of the fastest-growing industry in the world because of its constant demand for better residential, commercial, as well as hospitality spaces. Moreover, the Indian economy is growing at a very fast pace with better infrastructure and development.This sector contributes 7% of India’s GDP. With the advancement in technology, the real estate industry is discovering new avenues of growth.
As the world continues to grow and change with time, so do their requirements in terms of housing, businesses, and so on. The real estate industry is one of the most well-known industry globally. The construction industry ranks third amongst14 major sectors of the economy. It comprises four sub-sectors they are housing, retail, hospitality, and commercial. In India, the real estate sector is the second-highest employment generator, after the agriculture sector. It provides jobs to the labor force and help them make their living.It is also expected that this sector will incur more non-resident Indian (NRI) investment, both in the short term and the long term.
The real estate industry is progressing very fast in the present times and has huge potential. It is indeed heading towards a technological upgradation in the form of home automation. This would be done through the Internet of Things (IoT), Artificial Intelligence (AI), and more such innovations in the field. The integration of these technologies and tech-enabled innovations in the real estate industry are further contributing to its growth.
Your cake of Happiness
Being able to own a home is one of life’s greatest joys as it is not just an aspiration of many, but also a sign of overall personal and social growth. It is not just the residential property that is in vogue. Whether it is commercial or hospitality-based, the real estate industry is full of endless possibilities. The rise in tourism industry has made the hotel industry thrive as well. Tourism is helping to boost the country’s progress and increase the revenue.
By 2040, the real estate market will grow to Rs. 65,000 Crore (US$ 9.30 billion) from Rs. 12,000 Crore (US$ 1.72 billion) in 2019. The real estate sector in India is expected to reach a market size of US$ 1 trillion by 2030 from US$ 120 billion in 2017 and contribute 13% of the country’s GDP by 2025. Retail, hospitality, and commercial real estate are also growing significantly, providing the much-needed infrastructure for India's growing needs.
Nowadays, people look for a lucrative lifestyle, this has motivated the real estate builders and developers to build with new planning strategies and build as per the growing needs of people. Therefore, Malls, well-equipped hospitals, Multiplexes, Entertainment Zones, Corporate Offices are being built on a large scale.
Real Estate Investments
The real estate market in India has witnessed significant investment opportunities driven by high growth because ofthe rising demand for residential as well as office spaces. In 2019, the market attracted up to INR 43,780 crore (USD 6.26 billion) in investment. The retail segment witnessed private equity (PE) investment worth USD 1 billion last year. The institutional investment was registered at USD 712 million by the end of the March 2020 quarter.
Apart from these lucrative investment opportunities, another major factor that is driving the growth of real estate in India is the home automation segment.The rise of nuclear families and the rise in per capita income has propelled the real estate industry to come up with new construction projects that serve the purpose of modern living.
The real estate industry is booming, even though, it has witnessed its share of ups and downs. Due to easier access to loans, improvements in the standard of living, and an increase in disposable income are also attracting people from humble backgrounds. Earlier, it was a reserved market exclusively for the elite and urban masses.
Real estate can introduce new trends based on the specific demands and needs of each individual. Most people in the country often migrate to metropolitan cities for a better life and career opportunities and finding a place to live is the first thing on their mind. This is where real estate can fulfil such needs by reaching out to those who are constantly on the move.
The real estate industry has witnessed new opportunities during the ongoing coronavirus pandemic. In March 2020 when the nationwide lockdown was first implemented, the need for better housing was realized amidst all the chaos created by the sudden announcement. It was understood that proper housing and home-related facilities meant better safety and security during such times. The Covid-19 pandemic highlighted the fact that more people are now looking for spacious and smart homes that can make their lives and overall household management easier and stress-free.
As the aforementioned growth projections and trends suggest, the future of Indian real estate not only looks bright but also stands to benefit from technological innovation within this space, especially during unpredictable times. Therefore, it can be said that automation and smart properties with a touch of human emotion are the future of real estate in India.