It’s been many years economists analyze the growth rate of the real estate industry. When speaking about India, the builders anticipate the best surges in pricing values as they had met instability in the market in recent years. Nevertheless, the builders like GP Homes can shut their worries because across India the growth rate of real industry was estimated to be 11.2% from 2015-2020. Hope, the surge will continue for the future.
According to the RBI House Price Index, there is a steady pricing rise over the years. When we look out the quarterly price movements, volatility can be seen in their findings. Just we take a glance on that;
All-India price growth – Compound Annual Growth Rate (CAGR)
- 1 year: 4.66%
- 3 years: 6.72%
- 5 years: 9.3%
Chennai scores a strong wicket say
- 1 year: 13.78%
- 3 years: 6.80%
- 5 years: 7.21%
The scores clearly illustrate an increase in real estate value.
The long-term drift in the market is encouraging investors. We are glad about our construction industry that stands in 3rd place among the 14 major sectors in terms of indirect, direct and induced effects of our country’s economy. No doubts, the real estate industry will attract much more Non-Resident Indian (NRI) investments for the long term. Why because, our nation’s culture, serenity, food, respectfulness and friendliness are always cherished by NRIs. Followed by Bengaluru, Chennai, Delhi, Goa, Ahmedabad, and Dehradun are the top listed cities in NRIs property investment.
Along with the rising demand for residential and commercial real estates, we can see the inflow of funds into the Indian Real Estate division. Private equity investments are expected to rise over US$ 100 billion by 2026. This soaring is expected eagerly by the builders and developers especially in Tier 1 and Tier 2 cities where they can foresee an exceptional development. It is our pride our country stands in the third place in the US Green Building Council (USGBC) ranking list for the top TEN countries for Leadership in Energy and Environmental Design (LEED) certified buildings. We successfully reached 752 LEED Projects sprawling across 20.28 million sq.mts of space. It is phenomenal for having received Foreign direct investment (FDI) inflows of over US$ 24.67 billion in the past eighteen years. This is foolproof of the industry’s growth.
The substantial growth in the Indian economy stimulated the overall demand for land and developed real estate across the industry. The increased demand for hotel accommodation and improved infrastructure developed inevitable demands in the real industry that is already in great demand for residential and commercials. Tax and other benefits are foreseen to result in a novel source of real estate demand.
Concordant with the explained points and referring a report, it is affirmed that India is one among the four countries (Russia, China and Brazil) that are likely to accomplish a much faster growth rate in property development and housing construction domain as compared to the US and UK real estate markets. The estimates say the Indian Real Estate market will hit $1 trillion by 2030.
