indian real estate : an overview
This sector is one of the most recognized worldwide. In India, the real estate sector is the second largest employer after agribusiness and is forecast to grow by 30 percent over the next decade. This sector is made up of four sub-sectors: housing, retail, hospitality, and commercial.
The demand for office space as well as urban and semi-urban accommodation. The construction industry ranks third among the top 14 sectors in terms of direct, indirect. It caused effects in all sectors of the economy.
Market size
The market is expected to reach US$180 billion by 2020. The housing sector is expected to contribute around 11% to India’s GDP by 2020. Retail, hospitality and commercial real estate are also they are growing significantly, providing much-needed infrastructure for India’s growth. needs.
New home launches in India’s seven major cities increased by 27% year-on-year between January and March 2018.
Sectors such as IT and ITES, retail, consulting and e-commerce have registered a high demand for office space in recent times. The demand for office space in the country increased 23% year-on-year between January and March 2018, with an office space absorption of 11.4 million square feet during the quarter. Private equity inflows into office real estate and IT/ITES have grown by 150% between 2014 and 2017, supported by strong attraction to the office sector
There were significant price increases, creating the illusion of good returns for both investors and buyers. Combine that with the propensity to build ever larger units at a higher price, and most real estate is unaffordable for the average buyer.
About the market
After all, how many people can afford to buy apartments worth Rs 5-10 million in a country where the average household income is Rs 40,000?
With sales speeds slowing and prices stable to the downside, cash flows have shrunk and construction has slowed dramatically. The slowdown in construction activity further sends the wrong signal, scaring off the next round of buyers.
And I’m talking about the capital. Most of that invested capital has earned returns in the single digits or, in most cases, negative. And therein lies the problem.
The global investment herd is a retrospective package. They primarily look at historical returns to decide whether to allocate more money to a specific market. In this sense, our record is dismal. Combine that with the fact that we are nothing more than a rounding error in a global investment portfolio, and the likelihood of a large equity allocation for India is low.
indian real estate
Indian Real Estate
