The year 2018 has been good to the Indian real estate market. The growth witnessed has been promising and is an indicator of the boom that the market will go through in the coming years. By the year 2025, real estate India market is expected to share 13 per cent of the country’s gross domestic product, according to a report by the National Real Estate Development Council (NAREDCO) and Asia Pacific Real Estate Association (APREA).
The contribution of real estate in GDP in the year 2017 was nearly 7 per cent. A closer look at the expected growth reveals that it is set to increase by around 1 per cent per year. By 2030, the valuation of realty market is expected to be $1 trillion.
Foreign direct investment (FDI), which is another major aspect related to India’s growth and real estate sector, is also proof of the growth in the realty market. Investcorp, the Bahrain based global alternative asset manager is planning to triple its assets under management to $1.5 billion by 2022 from $450 million at present, according to India Times.
Investcorp will also focus on warehousing, commercial real estate and consumer technology companies. “One of the most important new markets for us is India. We have watched for years the direction India has taken, the reforms that are happening and the pro-business and pro-investment spirit,” said Mohammed Alhardi, executive chairman of the company.
Furthermore, real estate in India is not only reeving love from investors overseas, but also undergoing changes when it comes to domestic companies focusing more on property. Mahindra Lifespace Developers, the reality firm belonging to Mahindra Group has acquired a 7 acre land in Pune for a housing project.
A statement release by the company said, “As part of its pursuit to acquire land for business growth, the company has executed an agreement to acquire approximately seven acres of land in Pune. The sale deed will be executed in due course.” The company is also working on other projects in metros – Pune and Bangalore.
The interim budget released last Friday will also be a factor in aiding the affordable housing sector in the country. The tax rebate given for an income up to tax slab of Rs 5 lac per annum will help the middle class and be of help when it comes the investing in real estate in India.