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The Indian real estate market is expected to register a CAGR of more than 15% during the forecast period.
The country’s real estate market was affected by the COVID-19 pandemic. In addition, the residential sector was the worst hit as strict lockdown measures across major cities in India impacted housing sales as home registrations were suspended and home loan disbursement was slow. However, the sector is in a recovering phase due to an increase in house sales, new project launches, and increasing demand for new office and commercial spaces, etc.
However, real estate is the second largest sector in the country after agriculture in terms of providing employment opportunities. Moreover, the growth of the real estate market in the country is supported by increasing industrial activities, rapid urbanization, and improved income levels. This is further contributing to the economy of the country.
Furthermore, the government has initiated key policies for the development of the real estate sector, such as the Real Estate Regulatory Act (RERA) and the Benami Transactions Act. The government is also providing a boost to affordable housing construction, interest subsidy for home buyers, service tax exemption, Dividend Distribution Tax (DDT) exemption, PR for foreign investors, etc.
Scope of the Report
The real estate sector includes various phases of property dealings, such as developing, selling, buying, leasing, and management processes in the industrial sector, residential sector, etc. Furthermore, the Indian real estate market report covers a complete background analysis of the industry, including current economic and market scenario, market size estimation for key segments, emerging trends in the market segments, and market dynamics. The report also covers the impact of the COVID-19 pandemic on the market.
In the report, the Indian real estate market is segmented by property type (residential, office, retail, hospitality, and industrial) and by key cities (Bengaluru, Mumbai, Pune, Chennai, and Hyderabad). The report offers market size and forecasts for all the above segments in value (USD billion).
|By Property Type|
|By Key Cities|
Key Market Trends
Residential Sector Witnessing Lucrative Growth
Major developers are focusing on affordable and mid-range housing units to meet increasing demand in the country. Moreover, the growth is driven by various factors such as rapid urbanization, a rise in the number of nuclear families, easy availability of home loans, etc.
In the first quarter of 2021, more than 58,300 units were sold, with Mumbai Metropolitan Region (MMR) and Pune holding more than a 53% share of sales. Cities in southern India, such as Bangalore, Hyderabad, and Chennai, contributed almost 27% of the sales in the residential sector, and the NCR region contributed more than 15% share of the sales.
However, a greater number of new housing projects were launched, which outpaced the housing sales in the country. More than 62,000 housing units were launched in 2021 compared to 41,000 housing units in 2020. Meanwhile, Hyderabad recorded robust growth in the supply of new housing units, with 12,600 housing units in 2021 compared to 3,300 housing units in 2020. Also, Pune and Mumbai Metropolitan Region (MMR) saw significant growth rates of 75% and 40%, respectively.
Mumbai Metropolitan Region (MMR) plays a vital role in the development of the residential sector in terms of supply and absorption of housing units among major cities, and this demand is driven by stamp duty cuts, discounts, and reduced home loan rates. Furthermore, the sales share of the southern markets such as Bengaluru, Chennai, and Hyderabad remained consistent.
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Increase in Office Space Absorption
Many companies, including consultancies and those belonging to the BPM, IT, and Banking, Financial, and Insurance Services (BFIS) sectors, are generating huge demand for office space in the Indian real estate market due to high potential and relaxed FDI norms. In addition, Mumbai consulting firms contributed more than 36% demand for total office space leasing.
In addition, Bangalore is leading in India in terms of the highest volume of office absorption, with more than 7.26 million square feet, followed by Hyderabad. In New Delhi and the National Capital Region (NCR), most demand is contributed by Grade A offices’ space absorption.
Furthermore, in 2021, the renewal of leasing activities was rising in the top six commercial real estate hubs, namely, Bengaluru, Mumbai, Pune, Chennai, Gurugram, and Noida. More than 7,400 leases spanning approximately 90 million square feet area were to be renewed. Furthermore, Mumbai holds the highest share of more than 40% in leasing renewal activity, followed by Pune with a 17% share.
In 2020, various sectors announced plans for office space leasing, resulting in robust growth of office space absorption. For instance, the manufacturing sector accounted for 24% of office space leasing, followed by 3PL, e-commerce, and retail.
The real estate market in India is highly fragmented in nature, with multiple players operating in the market. Higher competition among market players is impacting selling prices and land prices, further leading to oversupply in the market. Furthermore, the market is dominated by a few pan-India branded players and multiple local players. Some of the major developers in the country are Prestige Estates Projects, DLF, Prestige Group, Lodha Group, Oberoi Realty, etc.
In December 2021, Experion Developers announced plans to invest USD 350 million in the next two years to expand its business. The expansion is focused on the commercial and residential sectors in the country. Moreover, 70 to 80% of the investment is for residential sector development, while the company is also focusing on 3.5 lakh square feet of commercial development.
In September 2021, US realty firm Hines expanded in India by entering partnerships with three local developers and landowners. The company invested more than USD 400 million in equity for the development of projects across major cities. At present, Hines is developing seven projects, including three housing and four office projects in Gurugram, Mumbai, Bengaluru, and Pune.
Table of Contents
1.1 Study Deliverables
1.2 Scope of the Study
2. RESEARCH METHODOLOGY
3. EXECUTIVE SUMMARY
4. MARKET INSIGHTS
4.1 Current Market Scenario
4.2 Government Regulations and Initiatives
4.3 Insights into Size of Real Estate Lending and Loan to Value Trends
4.4 Insights into Rental Yields in Residential Real Estate Segment
4.5 Insights into Technological Trends in the Market
4.6 Impact of COVID-19 on the Market
5. MARKET DYNAMICS
5.1 Market Drivers
5.2 Market Restraints
5.3 Market Opportunities
5.4 Porter's Five Forces Analysis
5.5 Supply Chain/Value Chain Analysis
6. MARKET SEGMENTATION
6.1 By Property Type
6.2 By Key Cities
7. COMPETITIVE LANDSCAPE
*List Not Exhaustive
7.1 Overview (Market Concentration and Major Players)
7.2 Company Profiles
7.2.1 Godrej Properties
7.2.2 Prestige Estates Projects Ltd
7.2.3 Oberoi Realty Limited
7.2.5 SOBHA Limited
7.2.6 Lodha Group
7.2.7 Jaypee Infratech Ltd
7.2.8 PNC Infratech Limited
7.2.9 Merlin Group
7.2.10 Sunteck Realty
7.2.11 Brigade Enterprises Ltd
7.2.12 Experion Developers Private Limited*
8. MAJOR ONGOING AND UPCOMING INFRASTRUCTURE PROJECTS
9. FUTURE OF THE INDIA REAL ESTATE MARKET
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Frequently Asked Questions
What is the study period of this market?
The Real Estate Industry in India market is studied from 2018 - 2027.
What is the growth rate of Real Estate Industry in India ?
The Real Estate Industry in India is growing at a CAGR of >15% over the next 5 years.
Who are the key players in Real Estate Industry in India ?
Godrej Properties, Prestige Estates Projects Ltd., OBEROI REALTY LIMITED., DLF, SOBHA limited are the major companies operating in Real Estate Industry in India .