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Jeet B Bhayani (SEBI RA)

18th Feb · SEBI-Registered Analyst

According to a joint research by KPMG and the National Real Estate Development Council (NAREDCO), India’s real estate sector is estimated to reach Rs. 88 lakh crore (US$ 970 billion) by 2030, reflecting an increase of over three times from an estimated Rs. 26.4 lakh crore (US$ 290 billion) volume by 2025. The report indicates that India’s real estate is expanding quickly and emerging as a significant contributor to the nation’s economic progress in residential, commercial, and industrial property sectors. Furthermore, this expansion aligns with the overarching objective of evolving into a developed economy by 2047. Urbanization, rising disposable income, policy changes, and greater institutional investment are all factors expected to boost the demand and expansion of India’s real estate sector. Reforms in policy that have enhanced transparency in the sector and consequently boosted investor confidence comprise the Real Estate Regulation and Development Act (RERA) as well as the execution of a Goods and Services Tax (GST). The rise in middle-income earners who own homes in urban areas is boosting demand for urban housing within this income group, while a trend towards structured housing continues to propel growth in this market. In the long run, real estate will persist in fostering job creation and infrastructure growth as a major player in employment rates and will also serve as a catalyst for investment in diverse economies with robust ties to other industry sectors, like cement and steel. The increasing share of real estate in India’s GDP is anticipated to enhance its position as a major engine of economic growth.

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