India's real estate market is expected to increase significantly, from its current valuation of around USD 650 billion to over USD 1 trillion by 2030. Increased demand for residential and commercial real estate, government programs, and technology developments are some of the causes driving this rise.
By 2030, the sector's share of India's GDP is predicted to increase from the present 7% to 13% to 15%. A compound annual growth rate (CAGR) of 29% over the previous four years has underpinned this expansion, demonstrating the sector's adaptation and endurance in the wake of COVID-19.
Investor trust and transparency have increased as a result of government reforms such as the Real Estate Regulation and Development Act (RERA). Tax breaks like TDS exemptions on rental revenue up to Rs. 6 lakh per year and a Rs. 15,000 crore budget for affordable homes are also encouraging investment.
Indicating strong demand, the industry is also profiting from a drop in inventory levels, which went from 33 months to 13 months. Co-working spaces, student housing, and warehousing are some of the new sub-segments that are fueling this growing trend. Real estate investment trusts (REITs), alternative investment funds (AIFs), and direct investments in publicly traded real estate enterprises are among the increasingly diverse investing possibilities. A wide range of investors can benefit from these assets' different risk and return profiles.
Through process simplification and improved client experiences, technological integration—especially in PropTech—is transforming the sector. The real estate industry in India is expected to be crucial to the country's economic growth as urbanization picks up speed and disposable incomes increase.
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