Real estate deals in the first half of 2018 were worth over $1.5 billion; size of Indian real estate sector is expected to touch US$ 180 billion
India needs investments to the tune of USD 4 trillion over the next 5-6 years to fulfill the government’s various schemes. The Housing for All by 2022 initiative alone is likely to bring USD 1.3 trillion investments into the residential sector by 2025, as per data shared by ANAROCK Property Consultants.
Also, while the top real estate deals in the first half of 2018 alone were worth over USD 1.5 billion, the market size of Indian real estate sector is expected to touch USD 180 billion by 2020 and is poised to grow at the rate of 30 percent over the next decade, it says.
Also, the first REIT listing will be a sure-fire draw for liquidity infusions into office assets, it says.
According to the Indian Brand Equity Foundation (IBEF), the number of Indians living in urban areas is slated to increase from 434 million in 2015 to 600 million by 2031. The housing sector alone is expected to contribute around 11 percent to India’s GDP by 2020.
All this is largely due to the fact that a new regulatory environment is being created with the implementation of several disruptive policies such as the Real Estate (Regulation and Development) Act, 2016 (RERA), Goods and Services Tax (GST), Real Estate Investment Trusts (REITs), the Benami Transactions (Prohibition) Amendment Act, 2016 and the Pradhan Mantri Awas Yojana (PMAY), among others. These policies are bringing in higher levels of transparency and accountability, financial discipline, focus and efficiency into the industry.
Major consolidation by way of mergers and acquisitions has also become a prominent trend in the Indian real estate sector. Some of the top deals in H1 2018 alone are worth over USD 1.5 billion comprising of investors like Blackstone, Canada Pension Plan, Ascendas, GIC and India-based HDFC venture, it says.