Real Estate Boom:The fastest growing sector in India 2024
Growth of Real Estate in India 2024
Nowadays, real estate's name has surrounded almost every corner of India; whether it is in terms of development or investment, it has surpassed every aspect. Today, we will evaluate how it is gradually becoming a major sector in growth, investment, and the provision of jobs.
In 2023, real estate saw a massive boom in investment and construction. The real estate market was valued at 330 billion dollars in 2023-2024 and is expected to reach 1.04 trillion dollars by 2029. This shows the massive potential of growth in this sector and how rapid it would be.
Real Estate Industry In India
196,200 residential units were sold in the top seven Indian cities between January and September 2023 real estate consultants JLL India said. This represents 91% of all houses sold in 2022. 223,905 units were launched within the same period, an increase of about 22% from the previous year. The statistics do not include plot projects, row houses, and villas.
The JLL Home Purchase Affordability Index analysis predicts that residential real estate will continue to climb within reasonable bounds and reach a three-year high in 2024. The predicted repo rate decrease will fall between 60 and 80 basis points, keeping the cost of properties within the reach of purchasers. Metro areas like Chennai, Delhi NCR, Mumbai NR, and others would be at the forefront of this real estate boom.
Future Of Real Estate Industry In India
As many as 2.6 lakh housing units were sold by the end of 2023, the largest amount since 2008, indicating that strong demand supports the domestic residential market despite rising house costs and borrowing rates, sales of almost 3 lakh units are expected to reach in 2024, continuing the rising pace, according to a JLL research titled "2023: A Year in Review."
Savills India projects that by 2025 the need for data centre real estate will rise by 15–18 million square feet. Because of growing family incomes and greater urbanisation, there is a huge demand for residential real estate. India is one of the top 10 home markets in the world for price appreciation. The India Brand Equity Foundation (IBEF) reports that from April 2000 to September 2022, foreign direct investment (FDI) in this industry, which includes construction development and operations, was USD 55.18 billion.
Real Estate Investment In india
Some experts believe that in 2024, people might prefer safer investments like real estate due to a fear of risks. Gunjan Goel from Goel Ganga Developers mentions economic uncertainty in the investing environment. Successful real estate investors suggest diversifying portfolios, staying informed about global events, and making data-driven decisions to manage market worries and find opportunities.
On the other hand, LC Mittal from Motia Group thinks technology will play a big role in helping real estate investors in 2024. Innovations like blockchain transactions and virtual property tours are changing how we buy, sell, and manage real estate. Investors embracing these changes can streamline operations and gain a competitive edge.
In 2024, despite it being an election year, strong demand factors are expected to drive significant growth. Strategic land purchases in prime locations and along city growth areas will boost the housing supply. Developers plan to introduce various housing options like plots, low-rise apartments, row houses, and villas.
Another report predicts a potential 33% increase in residential prices in the top seven Indian cities within three years. Owning a home is seen as securing an asset, unlike renting. Real estate holds its value in uncertain times and tends to appreciate over time. Unlike stocks and gold, which can be unpredictable, home loans also come with attractive tax benefits, according to Anuj Puri, Chairman of ANAROCK Group.
Conclusion
The data provided by different organisations show that real estate will continue to boom in the upcoming years. Private sector and Government are working together to lead the development in this sector by initiating schemes such as Pradhan Mantri Awas Yojana (Gramin) and Pradhan Mantri Awas Yojana 2024.
It is the right time for you to invest in a rapidly growing real estate sector, whether you want to invest in a risk-free asset or want to own a home at an affordable price. Your investment will boost hugely in the future and will be inflation- and risk-free.
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