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28 June, 2023
According to a joint study carried out by Grant Thornton Bharat and the PHD Chamber of Commerce and Industry (PHDCCI), the real estate sector in India looks in good shape. With positive investor sentiments, the sector is growing, evolving, and redeveloping at the same time. The report reveals that the growth potential of the real estate industry in India will shoot up to 18% by 2030. Currently, the industry is witnessing a growth between 7% and 8%.
The report has been released at a time when the real estate industry in India has emerged as the second-highest employment generating sector in the country. Currently, around 5% to 6% of India’s GDP comes from the realty segment. The report also outlines that by 2025, the sector is likely to account for 13% contribution to the country’s GDP.
The report also stated that student housing, co-working spaces, shared housing, co-living spaces, data centres, warehousing, and senior assisted living are some of the emerging asset classes. According to inputs by experts, there has been an immense growth in these segments in the Tier 1 and Tier 2 cities. In the metro cities, increasing prices and space paucity have made property investors think of purchasing properties in alternative locations.
Interestingly, the demand for co-working spaces has increased as a result of the work-from-home trend. Besides, holiday homes are also in high demand in different parts of India. The government has spent heavily on connectivity and infrastructure projects. All these factors contributed to the growth of the real estate sector in Tier 1 and Tier 2 cities.
Besides, the government has also come up with several policies and regulations to put the real estate sector on its growth trajectory. These include the Pradhan Mantri Awas Yojana (PMAY), Smart City Mission, FDI, RERA, and Make in India initiatives. This has led to the formalizing, recognizing, and growth of the real estate sector. According to the PMAY-U data, around INR 8.28 lakh crore has been disbursed to construct affordable homes in cities and towns across the country.