The Indian real estate market is set to become the third largest global market soon. As per the recent survey conducted by KPMG in association with Naredco and APREA, the realty sector is expected to touch USD 1 trillion by 2030.
The report, titled “Indian real estate and construction: Consolidating for growth,” was released at the Real Estate and Infrastructure Investor’s Summit 2018 held in Mumbai on Sept. 27, Thursday. It outlined that India has consistently improved its ranking in global real estate since 2014, which has instilled confidence in investors.
The report gives impetus to various government’s reforms like RERA, GST, along with the renewed focus on affordable housing in changing the scenario of the realty sector. It further added that strong economic ground rules, proactive reforms and the use of technology will continue to boost the sector.
Here are the key findings. Read the complete report here.
- The real estate sector is estimated to grow to USD 650 billion by 2025 and will surpass USD 850 billion by 2028 to touch USD 1 trillion by 2030.
- This spike in the growth of the real estate market will contribute about 13 percent to the GDP and provide employment to over 65 million people. Currently, the Indian real estate sector is the third largest employer after agriculture and manufacturing in the country and employs over 50 million people presently.
- Private equity investments in Indian real estate have improved by 15 percent year-on-year in January-March 2018, reaching $ 3 billion.
- $4 billion has been invested by institutional investors in 2018 so far, out of which nearly 44 percent are from foreign investors primarily from the US, Canada, and Singapore.
- The average deal size has crossed the $150 million mark, which is highest in about five years.
Interestingly, it seems that the coming times will not only bring more funds in the Indian real estate but will pose newer problems to deal with. The report mentions that close to one-third of the real estate leaders have reported cases of cybersecurity issues over the last 24 months.
Due to this rising problem, technologies such as cybersecurity, blockchain, IoT, AI, and data analytics will be the key players for the sector in the coming times.